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Lee Financial Services pays employees monthly. Payroll information is listed below for January 2016, the first...

Lee Financial Services pays employees monthly. Payroll information is listed below for January 2016, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.

Salaries  

$104,998

Federal income taxes to be withheld

6,670

Federal unemployment tax rate

0.60%

State unemployment tax rate (after FUTA deduction)

3.6%

Social Security tax rate

6.20%

Medicare tax rate

1.45%

                                                                                                                         

What is the net pay (credit to cash) used to record the employee’s paychecks?

Solutions

Expert Solution

Salaries   104998
Less: Deductions
Federal income taxes to be withheld 6670
Social Security tax 6509.88 =104998*6.2%
Medicare tax 1522.47 =104998*1.45%
Total Deductions 14702.35
Net pay 90295.65

ekkarill92 answered 2 years ago
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