Lee Wemer is general manager of Valuepoint Salons. During 2024, Wemer worked for the company all year at a $14,700 monthly salary. He also eamed a year-end bonus equal to 5% of his annual salary. Wemer's federal income tax withheld during 2024 was $3,528 per month, plus $2,117 on his bonus check. State income tax withheld came to $60 per month, plus $40 on the bonus. FICA tax was withheld on the annual earnings. Werner authorized the following payroll deductions: Charity Fund contribution of 3% of total eamings and life insurance of $45 per month. Valuepoint incured payroll tax expense on Werner for FICA tax. The company also paid state unemployment tax and federal unemployment tax (Click the icon to view payroll tax rate information.) Read the requirements Requirement 1. Compute Wemer's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar Begin by computing Werner's gross pay for the year. (Round all amounts to the nearest dollar) Gross pay Bonus Employee income tax Medicare tax OASDI tax Salary More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI: 6.2% on first $132,900 eamed; Medicare: 1.45% up to $200,000, 2.35% on eamings above $200,000. Employer: OASDI: 6.2% on first $132,900 eamed; Medicare: 1.45%; FUTA 0.6% on first $7,000 eamed; SUTA: 5.4% on first $7,000 eamed. Print Done
Lee Wemer is general manager of Valuepoint Salons. During 2024, Wemer worked for the company all year at a $14,700 monthly salary. He also eamed a year-end bonus equal to 5% of his annual salary. Wemer's federal income tax withheld during 2024 was $3,528 per month, plus $2,117 on his bonus check. State income tax withheld came to $60 per month, plus $40 on the bonus. FICA tax was withheld on the annual earnings. Werner authorized the following payroll deductions: Charity Fund contribution of 3% of total eamings and life insurance of $45 per month. Valuepoint incured payroll tax expense on Werner for FICA tax. The company also paid state unemployment tax and federal unemployment tax (Click the icon to view payroll tax rate information.) Read the requirements Requirement 1. Compute Wemer's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar Begin by computing Werner's gross pay for the year. (Round all amounts to the nearest dollar) Gross pay Bonus Employee income tax Medicare tax OASDI tax Salary More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI: 6.2% on first $132,900 eamed; Medicare: 1.45% up to $200,000, 2.35% on eamings above $200,000. Employer: OASDI: 6.2% on first $132,900 eamed; Medicare: 1.45%; FUTA 0.6% on first $7,000 eamed; SUTA: 5.4% on first $7,000 eamed. Print Done
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...
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Transcribed Image Text:Lee Werner is general manager of Valuepoint Salons. During 2024, Werner worked for the company all year at a $14,700 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. Werner's federal
income tax withheld during 2024 was $3,528 per month, plus $2,117 on his bonus check. State income tax withheld came to $60 per month, plus $40 on the bonus. FICA tax was withheld on the annual earnings. Werner
authorized the following payroll deductions: Charity Fund contribution of 3% of total earnings and life insurance of $45 per month.
Requirement 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar.
Begin by computing Werner's gross pay for the year. (Round all amounts to the nearest dollar.)
Gross pay:
Bonus
Employee income tax
Medicare tax
OASDI tax
Salary
More info
(...
For all payroll calculations, use the following tax rates and round amounts to the
nearest cent:
Employee:
Employer:
OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to
$200,000, 2.35% on earnings above $200,000.
OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA:
0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.
Print
Done
---
Valuepoint incurred payroll tax expense on Werner for FICA tax. The company also paid state unemployment tax and federal unemployment tax.
(Click the icon to view payroll tax rate information.)
Read the requirements.
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