Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An employee has an annual salary of $ 1 8 5 , 0 0 0 . The employee pays 2 0 0 0 per year

An employee has an annual salary of $185,000. The employee pays 2000 per year in FSA, $3000 in DCA, $1500 in LFSA, $2000 in HSA, and $2500 per year in health insurance. Calculate the total amount of money that the IRS will receive for this employment in payroll taxes and unemployment insurance. Use the following tax information:
SS tax is 6.2% of first $152,800 of wages
Medicare tax is 1.45% of wages
FUTA is 7% on first $9,200 and 5.4% credit is given to employer who pays SUTA on time.
SUTA is 6.5% on first $10,700
Assume that the employer does not pay SUTA on time.
Assume employee will make the best use of all health/dependent care accounts.
Assume employee has no tax dependents.
Remember to show all the steps and all the calculations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Integrated Statements Approach

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

2nd Edition

324312113, 978-0324312119

More Books

Students also viewed these Accounting questions