A4 Portia Grant is an employee who is paid monthly. For the month of January ofthe current year, she earned a total of $9,238. The Federal InsuranceContributions Act (FICA) tax for social security is 6.2% of the first $137,700earned each calendar year and the Federal Insurance Contributions Act(FICA) tax rate for Medicare is 1.45% of all earnings. The FederalUnemployment Taxes (FUTA) tax rate of 0.6% and the State UnemploymentTaxes (SUTA) tax rate of 5.4% are applied to the first $7,000 of an employee'spay. The amount of federal income tax withheld from her earnings was$1,532.87. What is the total amount of taxes withheld from the Portia'searnings? (Round your intermediate calculations to two decimal places.)Multiple ChoiceO $2,725.73O$1,717.24

Federal income tax of $1,532.87 is given in the question. We need to calculate other payroll…

Answered: Portia Grant is an employee who is paid…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 7E

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Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were 12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrexs state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter. REQUIRED 1. Calculate Payrexs FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7. 2. Prepare the journal entry for Payrexs payroll taxes for the week ended January 7. 3. What amount of payroll taxes did Payrex save because of its good employment record?
Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.

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Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $9,238. The Federal Insurance Contributions Act (FICA) tax for social security is 6.2% of the first $137,700 ned each calendar year and the Federal Insurance Contributions Act