Holden Smith manages a Dairy World drive-in. His straight-time pay is $18 per hour, with time-and-a-half for hours inexcess of 40 per week. Smith's payroll deductions include withheld income tax of 30%, FICA tax, and a weeklydeduction of $10 for a charitable contribution to United Way. Smith worked 57 hours during the week.(Click the icon to view payroll tax rate information.)Read the requirements.Requirement 1. Compute Smith's gross pay and net pay for the week. Assume earnings to date are $10,000.(Round all amounts to the nearest cent.)Begin by computing Smith's gross pay for the week.Gross PayCompute Smith's net pay for the week. (Round all amounts to the nearest cent.)Withholding deductions:

The objective of the question is to calculate Holden Smith's gross pay and net pay for the week.…

Answered: Holden Smith manages a Dairy World…

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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Damerly Company (a Utah employer) wants to give a holiday bonus check of $325 to each employee. Since it wants the check amount to be $325, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to John Rolen if his cumulative earnings for the year are $46,910. Besides being subject to social security taxes and federal income tax (supplemental rate), a 4.95% Utah income tax must be withheld on supplemental payments. Enter deductions beginning with a minus sign (-). You may need to adjust by a penny (subtract or add) to the gross amount to get net pay to calculate exactly to $325.00. 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…
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Youngston Company (a Massachusetts employer) wants to give a holiday bonus check of $750 to each employee. Since it wants the check amount to be $750, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to Genna Fredrich if her earnings for the year are $55,920. Besides being subject to social security taxes and federal income tax (supplemental rate), a 5.00% Massachusetts income tax must be withheld on supplemental payments........? Compute the gross bonus amount and various amounts deducted to arrive at the net bonus check of $750. Present your computation vertically in a single column. Show supporting computations.
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