Question

In: Accounting

An employee works 48 hours (48 - 40 were overtime hours) during a workweek in December...

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 = $

Solutions

Expert Solution

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....


Related Solutions

During the first week of January, an employee works 45 hours. For this company, workers earn...
During the first week of January, an employee works 45 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $35 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45%...
Leticia Alvarez worked 40 hours straight time and 20 hours overtime at an hourly rate of...
Leticia Alvarez worked 40 hours straight time and 20 hours overtime at an hourly rate of $10.50. Of the 20 hours overtime, 8 hours were at double time. Compute the following: 30. Straight-time earnings = 31. Overtime earnings = 32. Gross earnings =
What is his hourly rate of pay if a regular workweek is 42 hours and overtime is paid at time-and-a-half the regular rate of pay?
A wage earner receives a gross pay of $699.93 for 52.5 hours of work. What is his hourly rate of pay if a regular workweek is 42 hours and overtime is paid at time-and-a-half the regular rate of pay?
Create a query that shows the last name, employee ID, hours worked, and overtime amount owed...
Create a query that shows the last name, employee ID, hours worked, and overtime amount owed for hourly employees who earned overtime during week 2. Overtime is paid at 1.5 times the normal hourly rate for all hours worked over 40. Note that the amount shown in the query should be just the overtime portion of the wages paid. Also, this is not a totals query- amounts should be shown for individual workers. QBE grid template. This is the exact...
An employee receives an hourly wage rate of $16, with time-and-a-half for all hours worked in excess of 40 during the week.
An employee receives an hourly wage rate of $16, with time-and-a-half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 47; federal income tax withheld, $145; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; and federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? Round your...
Calculate Payroll An employee earns $40 per hour and 1.5 times that rate for all hours...
Calculate Payroll An employee earns $40 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 55 hours during the week, and that the gross pay prior to the current week totaled $58,000. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $575. a. Determine the gross pay for the week. $ If...
1) In Canada, a worker who works 40 hours can produce 200 chairs or 100 tables....
1) In Canada, a worker who works 40 hours can produce 200 chairs or 100 tables. In Norway, a worker who works 40 hours can produce 240 chairs or 80 tables. Give one trade, in terms of chairs per table, at which the two countries would both be willing to trade. 2)In Canada, a worker who works 40 hours can produce 200 chairs or 100 tables. In Norway, a worker who works 40 hours can produce 240 chairs or 80...
Kyle Forman worked 48 hours during the week for Erickson Company at two different jobs. His...
Kyle Forman worked 48 hours during the week for Erickson Company at two different jobs. His pay rate was $14.90 for the first 40 hours, and his pay rate was $11.00 for the other 8 hours. Round your overtime rate and other interim computations to two decimal places and use the rounded amount in subsequent computations. Round the final answers to the nearest cent. Determine his gross pay for that week if the company uses the one-half average rate method....
Employee versus independent contractor Juan is an accounting graduate major who works during the day and...
Employee versus independent contractor Juan is an accounting graduate major who works during the day and takes classes in the evening. He was excited to finally land his first accounting job doing bookkeeping for a local bakery. In his new job, Juan works 30 hours a week at the bakery’s main office. His excitement quickly dampened when he realized that his new employer was not withholding any income taxes or FICA taxes from his paycheck. Apparently, Juan’s employer is treating...
Data were collected on number of credit hours earned from a random sample of 40 JMU...
Data were collected on number of credit hours earned from a random sample of 40 JMU students. The mean was 57.2 and the standard deviation was 8.9. Conduct a test to determine whether the true mean number of credit hours earned differs from 55.0, allowing a Type I error rate of 0.05. Assume that the distribution of the number of credit hours earned is normal. Show your full work. You may not use your calculator’s built-in function.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT