The monthly salaries for
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The monthly salaries for December and the year-to-date earnings of the employees of Lincoln Project Company as of November 30
follow.
Determine the amount of social security tax to be withheld from each employee's gross pay for December. Assume a 6.2 percent
social security tax rate and an earnings base of $142,800 for the calendar year.
Note: Round your answers to 2 decimal places.
Employee December
Number
Salary
1
2
3
4
Year-to-Date Social Security
Earnings
Taxable
Through
Earnings
November 30 December
$ 9,000.00 $ 72,000.00
10,000,00 70,000.00
11,000.00
115,500.00
14,000.00
132,000.00
Social
Security Tax
6.2%
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