Question

An employee works 48 hours (48 - 40 were overtime hours) during a workweek in December of 2019. He earns $8,000/month, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $110,300 during the year. He has requested that his employer withhold 11.5% of gross pay to contribute to a 403(b) plan.


Taxable income for federal income tax withholding = $

Taxable income for social security tax = $

Taxable income for medicare tax = $

Answer 1

As the rate of Federal Income tax is differ based on the income cover in the following ranges. they are-

$10 percent on your taxable income if it is up to $9,700,

12 percent if taxable income is between $9700- $39,475,

22 percent on taxable income between $39,475 and $84,200,

24 percent on the amount over $84,200 up to $160,725,

32 percent on the amount over $160,725 up to $204,100,

35 percent on the amount over $204,100 up to $510,300, and

37 percent on the rest.

Thus the Taxable income for federal tax withholding is 26472(110300*24%). since income is between $84200- $160725 hence rate is 24%

2. Taxable income for social security tax is 6.2% on the taxable income

thus, 110300*6.2%= 6839 is the taxable income for social security tax

3. Taxable income rate is 2% for medicare tax since in the given case the taxable income exceeds $28501 and accordingly medicare tax will be applicable to such employee.

Thus, $110300*2%= $2206 is the medicare tax.

Thankyou....