A6 1Amy Prince earns $42,000 per year and is paid once a month. For January, she had $198 withheld from her pay for federal income taxes, and $57withheld for health insurance. Social Security tax is 6.2% on a maximum of $142,800 of gross wages per year, and Medicare tax is 1.45%; the federalunemployment tax rate is 0.6% and state unemployment tax rate is 4.2%, both on a maximum of $7,000 of gross wages per year. What is the totalemployer payroll tax expense for Amy's January paycheck?Multiple ChoiceО$168.00$435.75$414.75$267.75

Amy's annual income is $42,000 and she is paid once a month. Therefore, her monthly gross income is…

Answered: 1 Amy Prince earns $42,000 per year and…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 44P

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Similar questions

Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?
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.
Davis, Inc. paid wages to its employees during the year as follows: a. How much of the total payroll is exempt from the FICA rate of 8%? b. How much of the total payroll is exempt from federal and state unemployment taxes? c. How much of the total payroll is exempt from federal income tax withholding?
Triston Vale is paid on a monthly basis. For the month of January of the current year, he earned a total of $5,220. Federal Insurance Contributions Act (FICA) tax for Social Security is 6.2% on the first $137,700 of earnings each calendar year, and the Federal Insurance Contributions Act (FICA) tax for Medicare is 1.45% of all earnings. The Federal Unemployment Taxes (FUTA) tax rate is 0.6% and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $885.70. a. Journalize the entry to record the payroll for the month of January. DATE X/X Salaries Expense SUTA tax FUTA tax Debit Credit b. Using the information from the question above, journalize the entry to record the payroll tax expense incurred for the month of January. DATE X/X Debit Credit
Sky Co. employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire yearAssume the Social Security tax rate is 6 percent for the first $130,000 of earnings, and the Medicare tax rate is 1,5 percent. Tom's federal income tax withholding amount is $890 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee. Assume that instead of $5,300 per month Tom earned $11,200 per month. Based on this new level of income Tom's new federal income tax withholding is $2,000. Answer the following questions 1. What is Tom's net pay per month from January - November. And net pay for December. 2. What amount does Tom pay monthly in FICA payroll taxes from January - November. And December. 3. What is the total payroll tax expense for Sky for January Year 1? February Year 1, March Year 1, December Year 1?
Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $8,788. FICA tax for Social Security is 6.2% on the first $128,400 of earnings each calendar year and the FICA tax for Medicare is 1.45% of all earnings. The FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,458.17. What is the amount of the employer's payroll taxes expenses for this employee? (Round your intermediate calculations to two decimal places.) Multiple Choice $544.86 $127.43 $378.00 $42.00 $1,092.29
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.)
Sky Company employed Tom Mills in Year 1. Tom earned $5,900 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $130,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $870 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee
Sky Company employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $110,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $940 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee. b. Assume that instead of $5,300 per month Tom earned $9,700 per month. Answer the following questions. What is Tom's net pay per month? What amount does Tom pay monthly in FICA payroll taxes? What is the total payroll tax expense for Sky Company for January Year 1? February Year 1? March Year 1? December Year 1?
16. Gus is the self-employed owner of Four Paws Pet Supply. His estimated annual earnings are $49,280.00 and he expects to pay 19% of this amount in income tax. What will be his quarterly estimated tax payment for the second quarter? (For self-employed persons, Social Security tax is 12.4% of wages up to $128,400, and Medicare tax is 2.9% of all wages.) A. $2,112.88 B. $2,340.80 C. $4,225.76 D. $9,363.20
Sky Company employed Tom Mills in Year 1. Tom earned $5,800 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $130,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $920 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee. Required a. Answer the following questions: 1. What is Tom's net pay per month? 2. What amount does Tom pay monthly in FICA taxes? 3. What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1? b. Assume that instead of $5,800 per month Tom earned $11,300 per month. Based on this new level of income Tom's new federal income tax withholding is $2,200. Answer the following questions. 1. What is Tom's net pay per month? 2. What amount does Tom pay monthly in FICA payroll taxes? 3. What is the…
Sky Company employed Tom Mills in Year 1. Tom earned $5,900 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $130,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $870 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee other information - Tom's net pay per month= 4587.50 - tom's monthly FICA tax= 442.50 -total payroll tax expense for january, feb, march and dec. year 1= jan= 796.50, feb = 508.50, march= 442.50, dec= 442.50

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