Financial Accounting - Access
4th Edition
ISBN: 9781259958533
Author: SPICELAND
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 8, Problem 8.5BE
To determine
Social Security Taxes:
Social Security taxes are usually collected in the form of self–employment tax or payroll tax. These taxes are paid for retirement, survivorship benefits and disability.
To Compute: the Social Security and Medicare for person S will be withheld during the year.
To determine
To Identify: the additional amount that the employer needs to contribute.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Mike Samson is a college football coach making a base salary of $652,800 a year ($54,400 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the FICA base amount is $128,400, compute how much will be withheld during the year for Coach Samson’s Social Security and Medicare. What matching amount will the employer need to contribute?
Mike Smith is a college football coach making a base salary of $720,000 a year ($60,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Unemployment taxes are 6.2% of the first $9,000 earned per employee.
1. Assuming the Social Security base amount is $118,500, compute how much will be withheld during the year for Coach Smith's Social Security and Medicare. (Round your answer to the nearest dollar amount.)
Total withheld for Social Security and Medicare during the year
hrough what month will Social Security be withheld?multiple choice
February
January
April
March
3. What additional amount will the employer need to pay, assuming unemployment taxes of 6.2%? (Round your answer to the nearest dollar amount.)
Additional contribution
Y8
In January of 2022, Molly contracted a student loan of $10,000 to be repaid over 5 years at a rate of 7%, compounded monthly. Payments are monthly. In addition, she incurred eligible moving expenses of $500, paid tuition of $5,000 and earned gross employment income of $21,300 in 2022. What total tax credit will he receive for education-related expenses? Round to the nearest dollar.
Select one:
a.
$1,024
b.
$274
c.
$900
d.
$847
Chapter 8 Solutions
Financial Accounting - Access
Ch. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Provide examples of current liabilities in the...Ch. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - How does commercial paper differ from a normal...Ch. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - Prob. 17RQCh. 8 - Prob. 18RQCh. 8 - Prob. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Record notes payable (LO82) Flip Side of BE82 On...Ch. 8 - Prob. 8.2BECh. 8 - Record notes receivable (LO82) Flip Side of BE81...Ch. 8 - Determine interest expense (LO82) Record...Ch. 8 - Prob. 8.5BECh. 8 - Record deferred revenues (LO84) On December 18,...Ch. 8 - Prob. 8.7BECh. 8 - Prob. 8.8BECh. 8 - Prob. 8.9BECh. 8 - Prob. 8.10BECh. 8 - Prob. 8.11BECh. 8 - Prob. 8.12BECh. 8 - Prob. 8.13BECh. 8 - Prob. 8.14BECh. 8 - Prob. 8.15BECh. 8 - Determine proper classification of liabilities...Ch. 8 - Prob. 8.2ECh. 8 - Prob. 8.3ECh. 8 - Prob. 8.4ECh. 8 - Determine interest expense (LO82) OS Environmental...Ch. 8 - Record a line of credit (LO82) The following...Ch. 8 - Calculate payroll withholdings and payroll taxes...Ch. 8 - Record payroll (LO83) During January, Luxury...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Analyze and record a contingent liability (LO85)...Ch. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Complete the accounting cycle using current...Ch. 8 - Prob. 8.1APCh. 8 - Prob. 8.2APCh. 8 - Prob. 8.3APCh. 8 - Record Payroll (LOS3) Vacation Destinations offers...Ch. 8 - Prob. 8.5APCh. 8 - Prob. 8.6APCh. 8 - Prob. 8.7APCh. 8 - Prob. 8.8APCh. 8 - Selected financial data regarding current assets...Ch. 8 - Prob. 8.1BPCh. 8 - Prob. 8.2BPCh. 8 - Prob. 8.3BPCh. 8 - Record Emily Turnbull, president of Aerobic...Ch. 8 - Prob. 8.5BPCh. 8 - Logins Roadhouse opened a new restaurant in...Ch. 8 - Record contingencies (LO85) Compact Electronics is...Ch. 8 - Prob. 8.8BPCh. 8 - Calculate and analyze rates (LO86) Selected...Ch. 8 - Great AdventuresContinuing Problem (This is a...Ch. 8 - Prob. 8.2APFACh. 8 - Prob. 8.3APFACh. 8 - Comparative Analysis American Eagle Outfitters,...Ch. 8 - Prob. 8.5APECh. 8 - Written Communication Western Manufacturing is...Ch. 8 - Earnings Management Quattro Technologies, a...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Note: None of the answers to this question on this site are correct. I've tried them all. The FICA Tax (LO 9.3) (COVID provisions) Lamden Company paid its employee Trudy, wages of $61,500 in 2020. Of this amount, $2,400 was allocated to sick pay for two weeks due to Trudy’s spouse contracting COVID and Trudy being quarantined. Trudy spent another 10 weeks at home caring for their children that were unable to attend school. Lamden allocated $10,000 in wages to family leave. Lamden allocated $6,000 of Trudy’s wages to the employee retention credit (5 weeks). The allocation of health care costs is $200 per week. Compute Lamden’s: Round your answers to two decimal places. Credit for sick pay $fill in the blank 1 Credit for family leave $fill in the blank 2 Employee retention credit $fill in the blank 3arrow_forward7) Ms. Benoit is a self-employed architect who earns $300,000 annual taxable income. For the past several years, her tax rate on this income has been 35 percent. Because of recent tax law changes, Ms. Benoit’s tax rate for next year will decrease to 25 percent. a) Based on a static forecast, how much less revenue will the government collect from Ms. Benoit next year? b) How much less revenue will the government collect from Ms. Benoit next year if she responds to the rate decrease by working more hours and earning $375,000 taxable income? c) How much less revenue will the government collect from Ms. Benoit next year if she responds to the rate decrease by working fewer hours and earning only $275,000 taxable income?arrow_forwardGraham has wages of $165,000 and $400 of deductible expenses. He has a tax offset of $100. He has private hospital health insurance. His PAYG withholding tax was $50,600. Thus his income tax payable / refundable in the current income tax year is: a. None of the options are correct. b. $1,164.67 c. $979.00 d. $961.22 e. $1,135.54arrow_forward
- A taxpayer spends well over $50 each month on public transit, and the taxpayer’s employer is implementing a new policy that gives each employee a $50 transit pass each month. However, to alleviate the cost of the new “perk”, the employer plans to reduce the employee’s pretax salary by $1,000. Assuming the taxpayer’s marginal tax rate is 35%, is the taxpayer better off under the new policy? Hint: Also incorporate into your calculation that nontaxable fringe benefits are not subject to FICA taxes whereas salary is. $50*12 = $600 after-tax $1000 * (1 – 35% - 7.65%) = $573.50 after-taxYes, the taxpayer/employee is better off. Where does 7.65% come from?? Is there anybody who can explain this?arrow_forwardWhat is included on line 1 of 1040 in the following problem? Matthew’s annual salary from The Pour House is $98,000. Matthew’s 2018 bonus was $6,000 (received in 2019). Matthew prticipates in his employer’s group health insurance plan to which he contributed $7,200 in 2019 for medical coverage. These contributions are made with after-tax dollars. The Pour House does not provide any retirement benefits, but it has established a § 401(k) plan to enable its employees to save for retirement. Matthew contributed $19,000 to the plan in 2019. Courtney is a licensed architect who works part time as an architectural consultant. Her professional activity code is 541310. Courtney collected $72,000 in consulting fees during 2019.arrow_forwardLO.5 During 2019, Greg Cruz (1401 Orangedale Road, Troy, MI 48084) works for Maple Corporation and Gray Company. He earns 90,000 at Maple Corporation, where he is a full-time employee. Greg also works part-time for Gray Company for wages of 50,000. a. Did Greg experience an overwithholing of FICA taxes? Write a letter to Greg and a memo for the tax files in which you explain your conclusion. b. Did Maple Corporation and Gray Company overpay the employers portion of FICA? Explain.arrow_forward
- Howard Murphy is the ower of Stormy Banana Films in West Hollywood, California. Stormy Banana Films had 15 employees with total annual wages of $230,750 (no one exceesed the Medicare tax surcharge or Social Security cap.). The FUTA rate for California in 2019 is 2.2 percent because it is a credit reduction state. Stormy Banana Films has a SUTA rate of 3.2 percent for 2019 with wage base of $7,000. Require: Compute the following employer taxes. (Round your answer to 2 decimal places.) Soical security tax Medicare tax FUTA SUTAarrow_forwardJackie is a non-VAT self-employed individual. His forecast for 2022 shows non-operating income of P50,000 and allowable deductions of P1,250,000. In the default option for the income tax regime, his income tax due would be P385,000. How much is the income tax due assuming the use of the 8% optional tax? A. 212,000 B. 228,000 C. 232,000 D. 208,000arrow_forwardXYZ Corporation has a deferred compensation plan under which it allows certain employees to defer up to 35 percent of their salary for five years. For purposes of this problem, ignore payroll taxes in your computations. (Use Table 1.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. a. Assume XYZ has a marginal tax rate of 21 percent for the foreseeable future and earns an after-tax rate of return of 9 percent on its assets. Joel Johnson, XYZ's VP of finance, is attempting to determine what amount of deferred compensation XYZ should be willing to pay in five years that would make XYZ indifferent between paying the current salary of $17,700 and paying the deferred compensation. What amount of deferred compensation would accomplish this objective? b. Assume Julie, an XYZ employee, has the option of participating in XYZ's deferred compensation plan. Julie's marginal tax rate is 37 percent, and she expects the rate to remain constant…arrow_forward
- Caruso Company's SUTA rate for next year is 2.9% because its reserve ratio falls in its state's 8% to less than 10% category [(contributions – benefits paid) ÷ average payroll = $93,500 ÷ $971,500 = 9.62%]. If the next category (10% to less than 12%) would give Caruso a lower tax rate of 2.3%, what would be the amount of the voluntary contribution needed to get Caruso to that next category?arrow_forward60. Nicanor, the Chief Financial Officer of ABC Corporation was given a car by his employer. The cost of the car given to Nicanor is P900,000. The fringe benefits tax that Nicanor is required to pay is:arrow_forwardA taxpayer has a liabilty on their California return greater than $80,000. They cut a check to the State for $100,000 instead of using an E-Pay system. They regularly have large liabilities, and this is not a one-time representation of their income, like a windfall or lottery payment. What is the amount of the penalty that they will pay due to not using the mandatory E-Pay for this liability? in california ftb?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage Learning
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
College Accounting, Chapters 1-27 (New in Account...
Accounting
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:Cengage Learning
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT