Social Security Tax is 6.2%; Medicare Tax is 1.45% and federal and state unemployment compensation taxes total 5.4% (both added together). The federalincome tax for the month is $250 and the state income taxes for the month is $40. If employee Xavier Edwards earned $2,500 for the current month andhe has not reached any maximums for taxes, what is Xavier's total net pay for the month?Multiple ChoiceО$2,018.75О$2,500.00О$1,883.75О$2,173,75

Step 1:Computation of the net pay for the month:Gross pay $2,500.00Deductions: Federal income taxes…

Answered: Social Security Tax is 6.2%; Medicare…

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 1PB

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An employee earns $16 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 50 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee’s federal income tax withheld is $202. a. Determine the gross pay for the week.fill in the blank 1 of 2$ b. Determine the employee’s net pay for the week. When required round interim computations to two decimal places. Round your final answer to two decimal places.fill in the blank 2 of 2$
Westway Company pays Suzie Chan $3,060 per week. Assume Social Security is 6.2% on $128,400 and 1.45% for Medicare.a. By the end of week 52, how much did Westway deduct for Suzie's Social Security and Medicare for the year? (Round your answers to the nearest cent.) b. What state and federal unemployment taxes does Westway pay on Suzie's yearly salary? The state unemployment rate is 5.1% and the federal unemployment tax is 0.6% on the first $7,000
Westway Company pays Suzie Chan $3,020 per week. Assume Social Security is 6.2% on $142, 800 and 1.45% for Medicare. By the end of week 52, how much did Westway deduct for Suzie's Social Security and Medicare for the year? What state and federal unemployment taxes does Westway pay on Suzie's yearly salary? The state unemployment rate is 5.1% and the federal unemployment tax is 0.6% on the first $7,000.
Rick O’Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of July, his federal income taxes withheld are $180, state income taxes withheld are $37, social security tax is 6.2%, Medicare tax is 1.45%, State Unemployment Tax is 4%, and Federal Unemployment tax is 0.6%. What is Rick’s net pay for July? Multiple Choice $2,500.00 $2,283.00 $2,308.75 $2,091.75
An employee earns $16 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 55 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee’s federal income tax withheld is $230. a. Determine the gross pay for the week.$fill in the blank 1 If applicable, round your final answer to two decimal places. b. Determine the net pay for the week.$fill in the blank 2
Matty Kim, an accountant for Vernitron, earned $120,900 from January to June. Matty earned $20,000. Assume a tax rate of 6.2% for Social Security on $128,400 and 1.45 on Medicare. How much are the July taxes for Social Security and Medicare? Social Security Medicare
An employee earns $36 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 55 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee’s federal income tax withheld is $518. a. Determine the gross pay for the week.$fill in the blank 1 If applicable, round your final answer to two decimal places. b. Determine the net pay for the week.
The chief executive officer earns $10,020 per month. As of May 31, her gross pay was $50,100. The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount of FICA-Social Security withheld from this employee for the month of June?
An employee earns $44 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 60 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee's federal income tax withheld is $708. a. Determine the gross pay for the week. If applicable, round your final answer to two decimal places. b. Determine the net pay for the week.
and multiply by 13 weeks to find the total quarterly amount withheld from all employees. The SOLUTIONSTRATEGY To solve for the total FICA tax due quarterly from the employees and the employer, calculate the tax due per employee per week, multiply by 25 to find the total weekly FICA for all employees, employer's share will be an equal amount. a. Social security tax = Gross earnings x 6.2% = 250 × .062 = $15.50 Medicare tax = Gross earnings x 1.45% = 250 x .0145 = $3.63 Total FICA tax per employee per week = 15.50 + 3.63 = $19.13 b. Total FICA tax per week = FICA tax per employee x 25 employees Total FICA tax per week =19.13 x 25 = $478.25 Total FICA tax first quarter = Total FICA tax per week x 13 weeks Total FICA tax first quarter = 478.25 x 13 = $6,217.25 Total FICA tax first quarter-Employee's share = $6,217.25 Total FICA tax first quarter-Employer's share = $6,217.25 TRYITEXERCISE 13 Big Pine Tree Service has 18 employees, 12 with gross earnings of $350 per week and 6 withn gross…

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