QUESTION 18Assume that social security taxes are payable at a 6.0% rate, Medicare taxes are payable at a 1.5% rate with no maximum earniand state unemployment compensation taxes total 4.6% on the first $7,000 of earnings. If an employee earns $2,500 for the curemployee's year-to-date earnings before this week were $6,800, what is the total payroll tax related to the currentO a. $9.20week?O b. $344.50O c. $196.70O d. $187.50

Employer withhold Social Security and Medicare taxes from employee's pay and contribute the same…

Answered: QUESTION 18 Assume that social security…

QUESTION 18 Assume that social security taxes a and state unemployment compensa employee's year-to-date earnings b O a. $9.20 O b. $344.50 O c. $196.70 O d. $187.50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. true or false
Question 12: In general, when the number of withholding allowances increases for an employee who has completed a pre-2020 Form W-4, the federal income tax withholding Answer: A. decreases В. increases also C. is not affected D. decreases for some and increases for others
For the current year, the maximum percentage of social security benefits which might be included In a taxpayer's gross income is? A, 50% 85% 0% 65% 100%
Use 2020 wage-bracket tables
QUESTION 10 FICA Rate (Social Security + Medicare Withholding) 7.65% Employee (6.2% + 1.45%) 7.65% (6.2% + 1.45%) Employer 15.3% Self-Employed (12.4% + 2.9%) Note: For employed wage earners, their Social Security portion is 6.2% on earnings up to the taxable maximum. Their Medicare portion is 1.45% on all earnings. Based on the above schedule, if Kim is working at Starbucks earning $45,000 per year, what is her FICA tax? O $6,885 O $2,790 $3,442.50 O She does not pay FICA tax because her total salary is less than $50,000
32 During the week ended June 15, Wiley Automotive's employees earned $2,650 of gross wages and had $363 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45%. The journal entry to record Payroll Tax Expense for the pay period would be: 2
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FIGURE 13-3 40. An employee earns a gross wage represented as W. The employee's payroll deductions are shown in Figure 13-4. What is the employee's net wage? Type of Deduction Amount of Deduction Federal Income Tax 0.22W Social Security 0.076W Health and Accident Insurance 0.065W Retirement 0.05W Miscellaneous 0.042W ⒸCengage Leaming 2013
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