Question
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old- nanny $165 per week for
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old- nanny $165 per week for 46 weeks during the current year.
b. What is the nannys portion of FICA and Medicare tax?
| A. | $488.22 |
| B. | None of the choices |
| C. | $580.64 |
| D. | $560.00 |
| E. | $559.66 |
| F. | $577.29 |
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old- nanny $165 per week for 46 weeks during the current year.
a. What is the employers portion of Social Security and Medicare tax for the nanny that Ann should pay when she files her Form 1040 for 2015?
| A. | $577.29 |
| B. | $580.64 |
| C. | $488.22 |
| D. | None of the choices |
| E. | $560.00 |
| F. | $559.66 |
Sally hires a maid to work in her home for $260 per month. The maid is 25 years old and not related to Sally. During 2015, the maid worked 10 months for Sally.
c. What is the amount of Social Security and Medicare tax which must be withheld from the maids wages?
| A. | $199.22 |
| B. | $191.25 |
| C. | $155.00 |
| D. | $198.90 |
| E. | $250.00 |
| F. | None of the choices |
Sally hires a maid to work in her home for $260 per month. The maid is 25 years old and not related to Sally. During 2015, the maid worked 10 months for Sally.
b. What is the amount of Medicare tax Sally must pay as the maids employer?
| A. | $36.25 |
| B. | $35.25 |
| C. | $30.25 |
| D. | None of the choices |
| E. | $31.25 |
| F. | $37.70 |
Sally hires a maid to work in her home for $260 per month. The maid is 25 years old and not related to Sally. During 2015, the maid worked 10 months for Sally.
a. What is the amount of Social Security tax Sally must pay as the maids employer?
| A. | $250.00 |
| B. | $141.25 |
| C. | $160.22 |
| D. | $155.00 |
| E. | None of the choices |
| F. | $136.25 |
Thomas is an employer with one employee, Sarah. Sarah's wages during 2015 are $19,450, and the state unemployment tax rate is 5.4 percent. Calculate the following amounts for Thomas:
a. FUTA tax before the state tax credit?
| A. | $1,050.30 |
| B. | $56.00 |
| C. | $525.15 |
| D. | None of the choices |
| E. | $434.00 |
| F. | $420.00 |
Thomas is an employer with one employee, Sarah. Sarah's wages during 2015 are $19,450, and the state unemployment tax rate is 5.4 percent. Calculate the following amounts for Thomas:
c. FUTA tax after the state tax credit
| A. | $525.15 |
| B. | $56.00 |
| C. | None of the choices. |
| D. | $32.50 |
| E. | $350.10 |
| F. | $1,050.30 |
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
9th edition
1-119-49356-3, 1119493633, 1119493560, 978-1119493631
