FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The monthly salaries for December and the year-to-date earnings of the employees of Bush Consulting Company as of November 30
follow.
Determine the amount of social security tax to be withheld from each employee's gross pay for December. Assume a 6.2 percent
social security tax rate and an earnings base of $132,900 for the calendar year.
Employee December
No.
Year-to-Date
Earnings
Soc. Sec.
Salary
Through
Taxable
Earnings
Social
Security Tax
6.20%
November 30
December
1
$ 10,900 $
100,000
2
11,000
71,000
3
10,560
116,160
4
11,000
101,000
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Transcribed Image Text:The monthly salaries for December and the year-to-date earnings of the employees of Bush Consulting Company as of November 30 follow. Determine the amount of social security tax to be withheld from each employee's gross pay for December. Assume a 6.2 percent social security tax rate and an earnings base of $132,900 for the calendar year. Employee December No. Year-to-Date Earnings Soc. Sec. Salary Through Taxable Earnings Social Security Tax 6.20% November 30 December 1 $ 10,900 $ 100,000 2 11,000 71,000 3 10,560 116,160 4 11,000 101,000
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