Trey Morgan is an employee who is paid monthly. For the month of January of the current year, he earned a total of $4,540. The FICA tax for social security is 6.2% of the first $132,900 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer. The amount of federal income tax withheld from his earnings was $680.70. His net pay for the month is:
Trey Morgan is an employee who is paid monthly. For the month of January of the current year, he earned a total of $4,540. The FICA tax for social security is 6.2% of the first $132,900 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer. The amount of federal income tax withheld from his earnings was $680.70. His net pay for the month is:
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 5E: For tax purposes, assume that the maximum taxable earnings are 118,500 for Social Security and 7,000...
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![Trey Morgan is an employee who is paid monthly. For the month of January of the current year, he earned a total of $4,540. The FICA tax for social
security is 6.2% of the first $132,900 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the
employer. The amount of federal income tax withheld from his earnings was $680.70. His net pay for the month is:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc421de9d-0f35-4718-9ff5-1707b29edc01%2Fac7e21eb-3f7c-4f57-8f00-1e0a5e799e84%2Fz4vfide.jpeg&w=3840&q=75)
Transcribed Image Text:Trey Morgan is an employee who is paid monthly. For the month of January of the current year, he earned a total of $4,540. The FICA tax for social
security is 6.2% of the first $132,900 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the
employer. The amount of federal income tax withheld from his earnings was $680.70. His net pay for the month is:
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