Margaret's regular hourly wage rate is $20, and she receives an hourly rate of $30 for work in excess of 40 hours. During a January payperiod, Margaret works 49 hours. Margaret's federal income tax withholding is $97, and she has no voluntary deductions.Compute Margaret's gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65%. (Round the answers to 2decimal places, eg. 15.25.)Gross earnings$Net pay$1

Step 1: Introduction to payroll taxesPayroll taxes refer to those taxes paid by both employer and…

Answered: Margaret's regular hourly wage rate is…

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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Morgan is an employee of Redwind Company. He earned $12,350 for the current month. Prior to the current payroll period, his year-to-date wages amounted to $131,200. Assume that the following tax rates are currently in effect. 7 FICA Tax OASDI Medicare Federal Income Tax Withholding Net pay (take-home pay): Rate X 6.2% 1.45% 25% Required: Compute Morgan's take-home pay (net pay) for the month. Note: Round your answer to the nearest cent. Ceiling $0 $128,400 No ceiling BEE K
Mary makes $16,000 a month (gross). She is married and claims 5 exemptions. Her state income tax withholding is 5%. (Use the text’s limit for social security, for parts a-c.) a. What is Mary’s net pay for January? (After ALL taxes and withholdings…SS, Med., FIT, SIT…) Show each tax/withholding amount (list Gross, then list each tax subtracted out to get net pay). b. What is Mary’s net pay for September? (Not cumulative, JUST September’s net pay.) c. What are Mary’s total taxes paid/withheld for the year? (Specify amounts for each tax.) d. What is the current year’s (2022’s) income limit (base) for social security and maximum social security tax payable (in dollar amount)? (A spreadsheet is a great tool for this problem.)
Liburd LLC has two employees Thomas and Marsha who are paid $ !5,500 and $2, 500 respectively. If the State unemployment tax rate is 5.4, what is (i) the amount of the total FUTA tax before the State unemployment tax (ii) the amount after the State tax credit
D
Tan's gross pay for the week is $1,400. His year-to-date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6% and that Tan's year-to-date pay has previously exceeded the $7,000 cap. What is the amount of state and federal unemployment tax that his employer must record as payroll tax expense and pay to the federal and state governments?
Justin Matthews is a waiter at the Duluxe Lounge. In his first weekly pay in March, he earned $300.00 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($500.00), and the employer withholds the appropriate taxes for the tips from this first pay in March. Calculate his net take-home pay assuming the employer withheld federal income tax (wage-bracket, single or married filing separately), social security taxes, and state income tax (1%). Enter deductions beginning with a minus sign (-). Round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places. As we go to press, the federal income tax rates for 2023 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2022 federal income tax tables for Manual Systems with Forms W-4 From 2020 or Later with Standard Withholding and 2022 FICA rates have been used. Click here to…
Your answer is partially correct. Karen Peters' regular hourly wage rate is $42, and she receives an hourly rate of $63 for work in excess of 40 hours. During a March pay period, Karen works 47 hours. Karen's federal income tax withholding is $80, and she has no voluntary deductions. The FICA tax rate is 7.65%. A Prepare the journal entry to record Karen's pay for the period. Use March 15 for the end of the pay period. (Round answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Mar. 15 here to search Account Titles and Explanation Salaries and Wages Expense FICA Taxes Payable Salaries and Wages Payable Cash Ef 50 Chp Debit 2,121 Credit 162.25 1.878.75 1,878.75 12:1 61°F Clear ^ @4) 934
The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned total wages of $2,900 in the current period and had cumulative pay for prior periods of $5,800. What is the amount of unemployment taxes the employer must pay on this employee's wages for the current period?
Davis and Thomas have earnings of $841 each. The social security tax rate is 6.0%, and the Medicare tax rate is 1.5%. assuming that the payroll will be paid on December 29th, what will the employers total FICA tax for this payroll?
Reagan earned $1500last week. He is married and is paid biweekly. Using the percentage method, (use tables in the handbook), his income tax is:
Mike Mays is a waiter at the Dixie Motel. In his first weekly pay in March, he earned $360 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($700.00), and the employer withholds the appropriate taxes for the tips from his first pay in March. Calculate his net take-home pay assuming the employer withheld federal income tax (wage tax bracket, married filing jointly, allowances, social security and state income tax (2%).
Peter Greeda's regular hourly wage rate is $13, and he receives 1.5 times his normal rate for hours worked in excess of 40. During a March pay period, Peter worked 47 hours. Peter's federal income tax withholding is $80, and he has no voluntary deductions. Compute Peter's gross earnings for the pay period. Round your answer to 2 decimal places.

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