You have just accepted your first full-time job as assistant manager. You will be earning a salary of $625 per week. That sounds like a lot of money, but you know there will be deductions from your paycheck, such as federal income tax, Social Security tax, and medical insurance. Let’s find out how much you will actually make. 1 You are single and claim no allowances. How much is deducted from your weekly paycheck for federal income taxes? 2Your state tax income rate is 4.2% on all gross income. How much is deducted from your weekly paycheck for state .income taxes? 3.Your local tax rate is 2.1% on all gross income. How much is deducted from your weekly paycheck for local tax? 4.Social security tax is deducted at the standard rate of 6.2%. How much will you pay into Social Security each week? 5.Medicare is deducted at the standard rate of 1.45% on all earnings. How much will your pay into Medicare each week? 6.You know it’s a good idea to have medical insurance. Since your employer is offering to pay 70% of the annual cost, you decide to participate in the company’s plan. If the plan has an annual cost of $4000, how much is deducted from your weekly paycheck for your share of the medical plan? 7.Given all of the above deductions, what will your net pay be each week? Answer in 1 sentence each and explain how you got the answer
You have just accepted your first full-time job as assistant manager. You will be earning a salary of $625 per week. That sounds like a lot of money, but you know there will be deductions from your paycheck, such as federal income tax, Social Security tax, and medical insurance. Let’s find out how much you will actually make. 1 You are single and claim no allowances. How much is deducted from your weekly paycheck for federal income taxes? 2Your state tax income rate is 4.2% on all gross income. How much is deducted from your weekly paycheck for state .income taxes? 3.Your local tax rate is 2.1% on all gross income. How much is deducted from your weekly paycheck for local tax? 4.Social security tax is deducted at the standard rate of 6.2%. How much will you pay into Social Security each week? 5.Medicare is deducted at the standard rate of 1.45% on all earnings. How much will your pay into Medicare each week? 6.You know it’s a good idea to have medical insurance. Since your employer is offering to pay 70% of the annual cost, you decide to participate in the company’s plan. If the plan has an annual cost of $4000, how much is deducted from your weekly paycheck for your share of the medical plan? 7.Given all of the above deductions, what will your net pay be each week? Answer in 1 sentence each and explain how you got the answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
You have just accepted your first full-time job as assistant manager. You will be earning a salary of $625 per week. That sounds like a lot of money, but you know there will be deductions from your paycheck, such as federal income tax, Social Security tax, and medical insurance. Let’s find out how much you will actually make.
1 You are single and claim no allowances. How much is deducted from your weekly paycheck for federal income taxes?
2Your state tax income rate is 4.2% on all gross income. How much is deducted from your weekly paycheck for state .income taxes?
3.Your local tax rate is 2.1% on all gross income. How much is deducted from your weekly paycheck for local tax?
4.Social security tax is deducted at the standard rate of 6.2%. How much will you pay into Social Security each week?
5.Medicare is deducted at the standard rate of 1.45% on all earnings. How much will your pay into Medicare each week?
6.You know it’s a good idea to have medical insurance. Since your employer is offering to pay 70% of the annual cost, you decide to participate in the company’s plan. If the plan has an annual cost of $4000, how much is deducted from your weekly paycheck for your share of the medical plan?
7.Given all of the above deductions, what will your net pay be each week?
Answer in 1 sentence each and explain how you got the answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education