Assume the following payroll information for Jane Smith: Gross pay $10,000; deductions: income tax $2,500, FICA Social Security $620, FICA Medicare $145; company health insurance plan, $100. What is the total amount remitted to the Internal Revenue Service by the employer? Assume gross salary maximums have not been reached.$1,530$4,030$4,130$6,530

Every Employer is required to deduct the following amount from employees Gross Income Social Security Tax: 6.2% of Gross pay as employee share Medicare Tax: 1.45% of Gross pay as employee share Federal Income Tax: Income tax calculated on the basis of Employee salary and wages. Note: Employer is also required to pay his share of Social Security Tax and Medicare Tax at the same rate as of employee. Deduction % Amount $ Gross Pay 10000 Social Security Tax: Employee's Share 6.20% 620 Employer's Share 6.20% 620 Medicare Tax: Employee's Share 1.45% 145 Employer's Share 1.45% 145 Income Tax 2500 Total Amount Remitted 4030 Note: Company heath insurance plan payment is not remitted to Internal Revenue Services. So correct answer is Option B i.e. 4030

Answered: Assume the following payroll…

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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Assume the following payroll information for Jane Smith: Gross pay $10,000; deductions: income tax $2,500, FICA Social Security $620, FICA Medicare $145; company health insurance plan, $100. What is the total amount remitted to the Internal Revenue Service by the employer? Assume gross salary maximums have not been reached.

$1,530

$4,030

$4,130

$6,530

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