Samantha Montgomery (age 42) is employed by Canon Company and is paid an annual salary of $62,430. She has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Montgomery: Round your answer to the nearest cent. As we go to press, the federal income tax rates for 2021 are being determined by budget talks in Washington and not available for publication. For this edition, the 2020 federal income tax tables for Manual Systems with Forms w-4 from 2020 or later with Standard Withholding and 2020 FICA rates have been used. a. What is the maximum that she can contribute into this retirement fund? 13,500 b. What would be the company's contribution? 1,872.9 V Note: For items c. & d. below, round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places. c. What would be her weekly take-home pay with the retirement contribution deducted (married filing jointly, wage-bracket method, and a 2.3% state income tax on total wages)? Click here to access the Wage-Bracket Method Tables. $ 770.5 x d. What would be her weekly take-home pay without the retirement contribution deduction? 1,172.97 x
Samantha Montgomery (age 42) is employed by Canon Company and is paid an annual salary of $62,430. She has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Montgomery: Round your answer to the nearest cent. As we go to press, the federal income tax rates for 2021 are being determined by budget talks in Washington and not available for publication. For this edition, the 2020 federal income tax tables for Manual Systems with Forms w-4 from 2020 or later with Standard Withholding and 2020 FICA rates have been used. a. What is the maximum that she can contribute into this retirement fund? 13,500 b. What would be the company's contribution? 1,872.9 V Note: For items c. & d. below, round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places. c. What would be her weekly take-home pay with the retirement contribution deducted (married filing jointly, wage-bracket method, and a 2.3% state income tax on total wages)? Click here to access the Wage-Bracket Method Tables. $ 770.5 x d. What would be her weekly take-home pay without the retirement contribution deduction? 1,172.97 x
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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Question
Please help me with parts c and d. Thank you so much!
Transcribed Image Text:Samantha Montgomery (age 42) is employed by Canon Company and is paid an annual salary of $62,430. She has just decided to join the company's Simple Retirement Account
(IRA form) and has a few questions. Answer the following for Montgomery: Round your answer to the nearest cent.
As we go to press, the federal income tax rates for 2021 are being determined by budget talks in Washington and not available for publication. For this edition,
the 2020 federal income tax tables for Manual Systems with Forms w-4 from 2020 or later with Standard Withholding and 2020 FICA rates have been used.
a. What is the maximum that she can contribute into this retirement fund?
13,500
b. What would be the company's contribution?
1,872.9 V
Note: For items c. & d. below, round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places.
c. What would be her weekly take-home pay with the retirement contribution deducted (married filing jointly, wage-bracket method, and a 2.3% state income tax on total
wages)?
Click here to access the Wage-Bracket Method Tables.
$
770.5 x
d. What would be her weekly take-home pay without the retirement contribution deduction?
1,172.97 x
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