7.Simon Cowell's weekly gross earnings for the week ending Dec. 7th were $2,500,and his federal income tax withholding was $525. Assuming the social security rateis 6% and Medicare is 1.5% of all carnings, what is Simon's net pay?

Formula: Social security tax amount = Gross earnings x social security tax rate. Medicare tax amount…

Answered: Simon Cowell's weekly gross earnings…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...

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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.
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.
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

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Simon Cowell's weekly gross earnings for the week ending Dec. 7th were $2,500, and his federal income tax withholding was $525. Assuming the social security rate is 6% and Medicare is 1.5% of all carnings, what is Simon's net pay?