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Ashley Robertson works for MRK all year and earns a monthly salary of $12,200. There is no overtime pay. Ashley's income tax withholding rate
Ashley Robertson works for MRK all year and earns a monthly salary of $12,200. There is no overtime pay. Ashley's income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Ashley elects to contribute 1% monthly to United Way. MRK also deducts $275 monthly for co-payment of the health insurance premium. As of September 30, Ashley had $122,000 of cumulative earnings. (Click the icon to view payroll tax rate information.) Read the requirements. Requirement 1. Compute Ashley's net pay for October. (Round all amounts to the nearest cent.) Gross pay Withholding deductions: Employee income tax Employee OASDI tax Employee Medicare tax Employee health insurance Employee contribution to United Way Total withholdings Net (take-home) pay 12200 More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Requirements 1. Compute Ashley's net pay for October. 2. Journalize the accrual of salaries expense and the payment related to the employment of Ashley Robertson.
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