Charles had the following income during the year: a. 13th month pay, 18,000 b. SSS, Pag-ibig and PHIC, 14,549 c. Basic Salary, 240,500 d. Overtime Pay, 32,000, e. Holiday pay, 21,000 f. Hazard pay, 12,000.   The income tax due of Charles is: a. 15,000 b. 11,100 c. 14,700 d. 12,300

Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.

For tax purposes, assume that the maximum taxable earnings are 118,500 for Social Security and 7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee.

During the year, employee Sean Matthews earned wages in the amount of 250,000. Discuss how the employees HI tax will differ from the employers HI tax for this employee.