Christine Erickson is the payroll accountant for Multi Winds Energy of Lincoln, Nebraska. The employees of Multi Winds Energy are paid biweekly. An employee, Linda Larson, comes to her on September 9 and requests a pay advance of $1,070, which she will pay back in equal parts on the September 24 and October 22 paychecks. Linda is single with no dependents and is paid $56,000 per year. She contributes 5 percent of her pay to a 401(k) plan and has $250 per paycheck deducted for a court-ordered garnishment. Assume that no pre-tax deductions exist for any employee and box 2 is not checked. Required: Compute her net pay for her September 24 paycheck. Her state income tax rate is 6.84 percent. Use the wage-bracket tables in Appendix C to determine the federal income tax withholding amount. You do not need to complete the number of hours. (Round your Intermediate calculations and final answer to 2 decimal places.) Answer is complete but not entirely correct. Net pay $ 2,051.49
Christine Erickson is the payroll accountant for Multi Winds Energy of Lincoln, Nebraska. The employees of Multi Winds Energy are paid biweekly. An employee, Linda Larson, comes to her on September 9 and requests a pay advance of $1,070, which she will pay back in equal parts on the September 24 and October 22 paychecks. Linda is single with no dependents and is paid $56,000 per year. She contributes 5 percent of her pay to a 401(k) plan and has $250 per paycheck deducted for a court-ordered garnishment. Assume that no pre-tax deductions exist for any employee and box 2 is not checked. Required: Compute her net pay for her September 24 paycheck. Her state income tax rate is 6.84 percent. Use the wage-bracket tables in Appendix C to determine the federal income tax withholding amount. You do not need to complete the number of hours. (Round your Intermediate calculations and final answer to 2 decimal places.) Answer is complete but not entirely correct. Net pay $ 2,051.49
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 2E
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Transcribed Image Text:Christine Erickson is the payroll accountant for Multi Winds Energy of Lincoln, Nebraska. The employees of Multi Winds Energy are
paid biweekly. An employee, Linda Larson, comes to her on September 9 and requests a pay advance of $1,070, which she will pay
back in equal parts on the September 24 and October 22 paychecks. Linda is single with no dependents and is paid $56,000 per year.
She contributes 5 percent of her pay to a 401(k) plan and has $250 per paycheck deducted for a court-ordered garnishment. Assume
that no pre-tax deductions exist for any employee and box 2 is not checked.
Required:
Compute her net pay for her September 24 paycheck. Her state income tax rate is 6.84 percent. Use the wage-bracket tables in
Appendix C to determine the federal income tax withholding amount. You do not need to complete the number of hours. (Round your
Intermediate calculations and final answer to 2 decimal places.)
Answer is complete but not entirely correct.
$ 2.951.49 X
Net pay
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