Scott is an employee at Company G and is paid monthly. For the month of January, he earned a total of $8,500. The tax for social security is 6.2% of the first $137,700 of employee earnings each calendar year and the tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of .6% is applied on ALL Earnings. The SUTA tax rate of 5.4% is applied to the first $6,000 of an employee's pay. The amount of federal income tax withheld from Scott’s earnings was $1,325.17. Scott’s net pay for the month is:
Scott is an employee at Company G and is paid monthly. For the month of January, he earned a total of $8,500. The tax for social security is 6.2% of the first $137,700 of employee earnings each calendar year and the tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of .6% is applied on ALL Earnings. The SUTA tax rate of 5.4% is applied to the first $6,000 of an employee's pay. The amount of federal income tax withheld from Scott’s earnings was $1,325.17. Scott’s net pay for the month is:
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 5E: For tax purposes, assume that the maximum taxable earnings are 118,500 for Social Security and 7,000...
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Scott is an employee at Company G and is paid monthly. For the month of January, he earned a total of $8,500. The tax for social security is 6.2% of the first $137,700 of employee earnings each calendar year and the tax rate for Medicare is 1.45% of all earnings.
The FUTA tax rate of .6% is applied on ALL Earnings. The SUTA tax rate of 5.4% is applied to the first $6,000 of an employee's pay. The amount of federal income tax withheld from Scott’s earnings was $1,325.17.
Scott’s net pay for the month is:
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