**PSC 3-2 Calculate Gross Pay & Taxable Pay**For each employee, first calculate gross pay. Then determine taxable income used to calculate federal income tax withholding, Social Security tax, and Medicare tax.**NOTE:** For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.---**1:** An employee works 45 hours (45 - 40 were overtime hours) during a workweek in October of 2020. The employee earns $45/hour, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $140,550 during the present year. He has requested that his employer withhold 8% of gross pay, which is to be contributed to a 401(k) plan.- Taxable income for federal income tax withholding = $______- Taxable income for social security tax = $______- Taxable income for medicare tax = $______---**2:** An employee works 35 regular hours during a workweek in September of 2020. The employee was hired twelve years ago, earns a salary of $122,500/year and is exempt from the overtime provisions of the FLSA. To date, he has received no compensation beyond his annual salary. He has requested that his employer withhold 10% of gross pay, which is to be contributed to a 403(b) plan.- Taxable income for federal income tax withholding = $______- Taxable income for social security tax = $______- Taxable income for medicare tax = $______---**3:** An employee works 53 hours (53 - 40 were overtime hours) during a workweek in November of 2020. The employee earns $10,100/month, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $135,240 during the year. He has requested that his employer withhold 12% of gross pay, which is to be contributed to a 401(k) plan.- Taxable income for federal income tax withholding = $______- Taxable income for social security tax = $______- Taxable income for medicare tax = $______

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Answered: An employee works 45 hours (45 - 40…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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