3Lesson 2.4NameSocial Security & MedicareThe Federal Insurance Contributions Act (FICA) requiresemployers to deduct 6.2% for Social Security and 1.45% of allannual income for Medicare taxes.1. Larenzo Lopez, a store manager, has a gross weekly income for$721.15. His earnings to date for this year total $25,240.25. Howmuch is deducted from his paycheck this week for Social Security?How much for Medicare?SSMedicare2. Maria Metcalf, a heating technician, has a gross weekly income The Federal Insurance Contributions Act (FICA) requires employers to deduct apercent of your income as taxes for Social Security to pay pays for retirement anddisability benefits.On a payroll statement Social Security and Medicare are under one umbrella:FICAGross Pay * 6.2%= Social Security tax Withheld(6.2% = .062)ntsGross Pay * 1.45% = Medicare tax Withheld (1.45% = .0145)FICA = Social Security Tax + Medicare Tax

given, gross pay =$721.15 annual income = $25240.25 social security tax = 6.2% × gross pay medicare…

The Federal Insurance Contributions Act (FICA) requires employers to deduct 6.2% for Social Security and 1.45% of all annual income for Medicare taxes. 1. Larenzo Lopez, a store manager, has a gross weekly income for $721.15. His earnings to date for this year total $25,240.25. How much is deducted from his paycheck this week for Social Security? How much for Medicare? SS Medicare

The Federal Insurance Contributions Act (FICA) requires employers to deduct 6.2% for Social Security and 1.45% of all annual income for Medicare taxes. 1. Larenzo Lopez, a store manager, has a gross weekly income for $721.15. His earnings to date for this year total $25,240.25. How much is deducted from his paycheck this week for Social Security? How much for Medicare? SS Medicare

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

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An employee earned $45,400 during the year working for an employer when the maximum limit for Social Security was $118,500. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is:
Solve the problem using 6.2%, up to $128,400 for Social Security tax and using 1.45%, no wage limit, for Medicare tax. What are the social security and Medicare withholdings (in $) for an executive whose annual gross earnings are $137,500?
Kalen O'Brien earned $710 this week. The deductions from her pay were as follows: FIT FICA-OASDI FICA-HI $75.00 44.02 10.30 State income tax 35.50 State disability insurance 8.50 Health insurance premium 19.10 Credit union contribution United Fund contribution 34.00 5.00 O'Brien's employer just received a garnishment order (credit card debt of $3,770) against her pay. Compute the following: round your answers to the nearest cent. a. O'Brien's disposable earnings b. The amount of her pay subject to the garnishment ☐ ☐
Lee Sutherlin is a self-employed electrical consultant. He estimates his annual net earnings at $35,300. How much Social Security and Medicare must he pay (in $) this year? Social Security $ Medicare $
John Doe is married and claims 3 withholding allowances. He collects overtime pay when he works over 40 hours a week. If his gross pay is $1,306.88, determine his weekly net earnings. Use the following deductions: FWT (Percentage Method), FICA 6.2%, Medicare 1.45%, SDI 1%, Health Insurance ($80/week), Union Dues ($4.50/week), and Trust Fund ($95/week). $891.28 $819.32 O $768.31 $786.67
An employee earned $43,300 working for an employer in the current year. The current rate for Federal Insurance Contributions Act (FICA) Social Security is 6.2% payable on earnings up to $137,700 maximum per year, and the rate for Federal Insurance Contributions Act (FICA) Medicare 1.45%. The employer's total Federal Insurance Contributions Act (FICA) payroll tax for this employee is: Multiple Choice O $7.221.60 $3,312.45 $10,534.05 $2.684 60
hrd.3
J1.
Solve the problem using 6.2%, up to $128,400 for Social Security tax and using 1.45%, no wage limit, for Medicare tax. Kristy Dunaway has biweekly gross earnings of $1,850. What are her total Social Security and Medicare tax withholdings (in $) for a whole year?Social Security $ Medicare $
Calculate the net pay. The balance before this weekly payroll is $90 below maximum as related to cumulative earnings in calculating Social Security. Assume a tax rate of 6.2% for Social Security on $142,800 and 1.45% for Medicare. status = single Gross= 900 calculate: FIT, social security, Medicare, and Net pay
3. On December 30, Nancy Sheridan hired an employee, Tom Shanahan, to help her with the medical billing. His first weekly pay period ends January 7 and he will be paid on January 14. He earns $17.25 per hour. During the 40-hour weekly pay period, Tom worked 48 hours. His Federal income tax is $122. Social Security tax is 6.2% and Medicare tax is 1.45%. a. Compute Tom's pay as of January 7. Regular earnings Date Overtime earnings Gross pay (Wages Expense) b. Record the General Journal entry for Tom's January 7 pay. Date Description Social Federal income tax Security payable tax payable Description Debit Medicare tax payable c. The FUTA rate for Sheridan is 0.6% and the SUTA rate is 5.4%. Record the General Journal entry for the January 14 employer's share payroll taxes. Debit Credit Net pay (Wages payable) Credit

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