* 1 1 6Lesson 2.4NameSocial Security & MedicareThe Federal Insurance Contributions Act (FICA) requiresemployers to deduct 6.2% for Social Security and 1.45% of allannual income for Medicare taxes.1. Larenzo Lopez, a store manager, has a gross weekly income for$721.15. His earnings to date for this year total $25,240.25. Howmuch is deducted from his paycheck this week for Social Security?How much for Medicare?SSMedicare2. Maria Metcalf, a heating technician, has a gross weekly incomeof $502.16. Her earnings to date for this year are $20,086.40. How Open withThe Federal Insurance Contributions Act (FICA) requires employers to deduct apercent of your income as taxes for Social Security to pay pays for retirement anddisability benefits.On a payroll statement Social Security and Medicare are under one umbrella:FICAGross Pay * 6.2%= Social Security tax Withheld(6.2% = .062)Gross Pay *1.45%= Medicare tax Withheld (1.45% =.0145)FICA = Social Security Tax + Medicare Tax%3DPage 137 Concept Check$3501.Monthly Salary: $3,100age 4 12 2.WeeRly talary:

Given details are Gross weekly income for Lorenzo Lopez = $721.5

Answered: $721.15. His earnings to date for this…

$721.15. His earnings to date for this year total $25,240.25. How much is deducted from his paycheck this week for Social Security? How much for Medicare? SS Medicare

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12EB: Reference Figure 12.15 and use the following information to complete the requirements. A. Determine...

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LO2 Joyce Lee earns 30,000 a year. Her employer pays a matching Social Security tax of 6.2% on the first 118,500 in earnings, a Medicare tax of 1.45% on gross earnings, and a FUTA tax of 0.6% and a SUTA tax of 5.4%, both on the first 7,000 in earnings. What is the total cost of Joyce Lee to her employer? (a) 32,295 (b) 30,000 (c) 30,420 (d) 32,715
An employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the FICA Medicare tax rate is 1.45%. What is the employees FICA taxes responsibility? A. $535.50 B. $612 C. None, only the employer pays FICA taxes D. $597.50 E. $550
LO.2 Belinda spent the last 60 days of 2019 in a nursing home. The cost of the services provided to her was 18,000 (300 per day). Medicare paid 8,500 toward the cost of her stay. Belinda also received 5,500 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is 370. What is the effect on Belindas gross income?
1. An employee whose current-year earnings subject to Social Security tax are $137,900 and whose earnings subject to Social Security tax during the current period are $6,450, owes Social Security tax of $_______ . 2. A small business, for which the SIMPLE IRA plan is designed, consists of fewer than _____ employees. Answer: A. 50 B. 100 C. 500 D. 1,000 3. The income threshold for Additional Medicare Tax levied is based on the _____. Answer: A. age of the employee B. amount in the employee's Social Security account C. Social Security income threshold D. employee's tax return filing status
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22. Compute Austin's total social security and Medicare taxes for the fourth quarter, if she is self-employed and earns $5,300.00 on a semimonthly basis. (For self-employed persons, Social Security tax is 12.4% of wages up to $128,400, and Medicare tax is 2.9% of all wages.) $437.25 $810.90 $2,623.50 $4,865.40
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,000 $ 1,500 b. 2,000 2,100 c. 132,900 9,500 Complete this question by entering your answers in the tabs below. Taxes to be Withheld From Gross Pay General Journal The employee’s federal income taxes withheld by the employer are $70 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee.Note: Round your answers to 2 decimal places. Taxes to be Withheld From Gross Pay (Employee-Paid Taxes) September Earnings Subject to Tax Tax Rate Tax Amount Federal income tax $70.00 Prepare the employer's September 30…
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,500 $ 1,900 b. 2,800 2,900 c. 128,600 10,000 Assuming situation (a), prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities.
1. Armand Giroux (single; 0 federal withholding allowances) earned weekly gross pay of $1,500. For each period, he makes a 401(k) retirement plan contribution of 8% of gross pay. The city in which he works ( he lives elsewhere) levies a tax of 1% of an employee's taxable pay (which is the same for federal and income tax withholding) on residents and 0.60% of an employee's taxable pay on nonresidents. Federal income taxwithholding=$ State income withholding=$ Local income tax withholding=$
Part I. An employee earns $22 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $177.10. a. Determine the gross pay for the week. b. Determine the net pay for the week. Part II. Assume that the social security tax rate is 6% and the Medicare tax rate is 1.5%. In the fol-lowing summary of data for a payroll period, some amounts have been intentionally omitted: Earnings: At regular rate ? At overtime rate $80,000 Total earnings ? Deductions: Social security tax $32,400 Medicare tax $8,100 Federal income tax withheld $135,000 Medical insurance $18,900 Union dues ? Total deductions $201,150 Net amount paid $338,850 Accounts debited: Factory Wages $285,000 Sales Salaries ? Office Salaries $120,000 a. Determine the amounts omitted in lines (1), (3), (8), and (12). b.…
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 5,000 $ 2,100 b. 2,500 2,600 c. 131,900 8,500 Assuming situation (a), prepare the employer’s September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee’s federal income taxes withheld by the employer are $90 for this pay period. Complete this question by entering your answers in the tabs below. Taxes to be Withheld From Gross Pay General Journal The employee’s federal income taxes withheld by the employer are $90 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.) Please donot provide solution in…
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