In: Accounting
Round to two decimal places at each calculation. Find the Taxable income for federal income tax withholding = $ Taxable income for social security tax = $ Taxable income for Medicare tax for a,b,c for this question.
1a. An employee works 42 hours (42-40 were overtime hours) during a workweek in December of 2016. He earns $40.50/hour, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $117,900 during the year. He has requested that his employer withhold 7% of gross pay, which is to be contributed to a 403(b) plan.
1b. An employee works 37 regular hours during a workweek in August of 2016. The employee earns a salary of $126,500/year and is exempt from the overtime provisions of the FLSA. To date, he has received no compensation beyond his annual salary. He has requested that his employer withhold 8% of gross pay, which is to be contributed to a 401(k) plan.
1c. An employee works 50 hours (50-40 were overtime hours) during a workweek in December of 2016. He earns $9,500/month, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $109,700 during the year. He has requested that his employer withhold 13% of gross pay to contribute to a403(b)plan.
1a. |
|
Earnings till now |
117,900.00 |
Add: Wages |
|
40 hours @40.50 per hour |
1,620.00 |
2 Hours @ 60.75 |
121.50 |
Gross pay |
119,641.50 |
Less: With holding |
8,374.91 |
Taxable income |
111,266.60 |
1b. |
|
Gross salary |
126,500.00 |
Less: With holding |
10,120.00 |
Taxable income |
116,380.00 |
1c. |
|
Earnings till now |
109,700.00 |
Add: Wages |
|
40 hours |
2,375.00 |
10 Hours @ 1.5 times |
890.63 |
Gross pay |
112,965.63 |
Less: With holding |
14,685.53 |
Taxable income |
98,280.09 |