Chapter 1, Problem 30DQ

1. What self-employment tax rate is applied to earnings that exceed $142,800 in a year and also do NOT exceed the additional Medicare tax threshold? Answer:   A.    15.3%     B.    12.4%     C.    2.9%     D.    1.45% 2. What is the standard credit applied to the FUTA tax rate in non-credit reduction states? Answer:   A.    0.6%     B.    0.9%     C.    5.4%     D.    6% 3. An employer in a non-credit reduction state would pay FUTA taxes of _____ for an employee whose year-to-date earnings prior to the current period are $7,200 and who earns $1,100 during the current period. Answer:   A.    $0     B.    $6.60     C.    $43.20     D.    $49.80

you sent the percentage but i need the  Approximate state income tax $ Approximate federal tex $ Combined effective income tax rate $ and the ATCF for the year 2109 $

Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers 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. Click here to access the Percentage Method Tables. Click here to access the Wage-Bracket Method Tables.           Amount to BeWithheld Employee FilingStatus No. of WithholdingAllowances Gross Wageor Salary PercentageMethod Wage-BracketMethod Lennon, A. S N/A $675 weekly $fill in the blank 1 $fill in the blank 2 Starr, P. S N/A 1,365 weekly fill in the blank 3 fill in the blank 4 McNeil, S. MFJ N/A 1,775 biweekly…

Please calculate the Medicare tax. Note : All calculations both intermediate and final should be rounded to two decimal places at each calculation.

A certain state uses the following progressive tax rate for calculating individual income tax: Income Range ($)  Progressive Tax Rate 0 - 2000                     2% 2001 - 9000              5% 9001 and up               5.4% Calculate the state income tax owed on a $70,000 per year salary. tax = $[?] Round your answer to the nearest whole dollar amount.

Since the SUTA rates changes are made at the end of each year, the available 2021 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.   Example 5-11 To illustrate the tax saving that may be realized as a result of making voluntary contributions, consider the following case of Krane Company, which is subject to the unemployment compensation law of a state that uses the reserve-ratio formula to determine experience ratings. The following contribution rate schedule applies for 2023: Reserve Ratio Rate 0% to less than 1% 6.2% 1% to less than 1.4% 5.6% 1.4% to less than 1.8% 5.0% 1.8% to less than 2.2% 4.4% 2.2% to less than 2.6% 3.8% 2.6% to less than 3.0% 3.2% 3.0% and over 2.6% For the three 12-month periods ending on June 30, 2022, the company had an average annual taxable payroll of $330,000. This is the base that the state uses as the average payroll. As of June 30, 2022, the credits to…

For 2018, the Social Security portion of the FICA tax is imposed at a rate of (not including any additional tax for high-income earners): a.6.2 percent for the employee and 7.65 percent for the employer. b.6.2 percent for only the employer. c.6.2 percent for the employee and 6.2 percent for the employer. d.6.2 percent for only the employee. e.None of these choices are correct.

Federal income taxes are allowed as an itemized deduction but are limited to $10,000? Ture or false

All of the following are true about 2021 distributions and contributions to Section 529 plans EXCEPT:  a) A deduction of up to $10,000 per taxpayer ($20,000 MFJ) is available on the federal income tax return for contributions.  b) Distributions may be used to pay the costs of participation in a registered apprenticeship program.  c) Distributions may be used to pay up to $10,000 in qualified student loans.  d) Nonqualified distributions are subject to a penalty tax of 10% of the amount included in income.