In: Accounting
Suppose you are single and work for a company that pays you $24/hour for all regular hours and time -and-a-half for any weekly hours exceeding 40 hours.In a typical workweek, you work 44 hours. Assume you are paid biweekly. Find the following for each biweekly pay. The tax year does not matter.
1)Gross Wages
2)FICA
3)Medicare
4)SDI
5)State Tax (3.1%)
6)Local Tax (1.2%)
7)Federal Withholding (Assume 2 withholding allowances, use percentage method.)
8)Net earnings to the nearest penny.
9)What percent of gross is taken away for deductions? Write your answer to the nearest tenth of a percent.
Particulars |
Amount ($) |
Gross wages (80 x 24+ 8 x 36) |
2208 |
FICA 6.2% |
136.896 |
Medicare @ 1.45% (2208 x 1.45%) |
32.016 |
SDI @0.1% (2208 x 0.1%) |
2.208 |
State tax (2208 x 3.1%) |
68.448 |
Local tax @1.2% (2208 x 1.2%) |
26.496 |
Federal withholding @24% assuming the annual wages will continue in the current trend |
529.92 |
Net earnings nearest penny |
|
Gross wages (80 x 24+ 8 x 36) |
2208 |
Less: All deductions (Note 1) |
795.984 |
Net earnings nearest penny |
1412.02 |
Percentage of gross income taken from deduction (795.984 x 100/2208) |
36.05 |
Nearest 10th of a percentage |
40% |
Working note 1:
FICA 6.2% |
136.896 |
Medicare @ 1.45% (2208 x 1.45%) |
32.016 |
SDI @0.1% (2208 x 0.1%) |
2.208 |
State tax (2208 x 3.1%) |
68.448 |
Local tax @1.2% (2208 x 1.2%) |
26.496 |
Federal withholding @24% assuming the annual wages will continue in the current trend |
529.92 |
Total deductions |
795.984 |