Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Alice James is new employee of the Solartech Company. Her cumulative earnings from July 1 through September 30, 20XX were $4,550. In October, Alice earned
Alice James is new employee of the Solartech Company. Her cumulative earnings from July 1 through September 30, 20XX were $4,550. In October, Alice earned $3,750. Assume the following tax rates: FICA-OASDI tax, 6.2% on the first $132,900 of earnings. FICA-Medicare tax, 1.45% on all earnings. State Disability Insurance, 1% In the first $122,909 of earnings. State unemployment tax, 5.2% on the first $7,000 of earnings. Federal unemployment tax, 0.8% on the first $7,000 of earnings. Employment training tax, 0.1% on the first $7,000 of earnings. Federal Income tax, 17% of gross earnings. State Income tax, 10% of gross earnings. Answer the following questions. Show all computations. What is the amount of FICA tax withheld from Alice's October earnings? What is the amount of FUTA tax that the company must pay of Alice's October earnings? What is the amount of SUTA tax that the company must pay on Alice's October earnings? What is the amount of Alice's net pay for October? What is the total amount of the employer's payroll tax expense resulting from Alice's October earnings
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started