ChaptersTT-T7 Use the following information for questions 1- 7 For the 12th monthly payroll of the calendar year the following information is provided: P ae Monthly Income Tax Union Dues Employee Pay Rate Withheld Withheld S6,700 600 8,000 3,200 $1,340 120 1,600 640 s15 24 All earnings are subject to the Social Security tax and the Medicare tax. The Social Security tax rate for both the employees' and employer's portion of the tax is 6%. The Medicare tax rate for both the employees' and employer's portion is 1.5%. The State Unemployment tax rte is 3% and the net Federal Unemployment rate is .8%. Maximum annual earnings subject to State and Federal Unemployment tax are $7,000 per employee. Unemployment taxes are only levied on the employer All of the employees were employed for the entire year and were entitled to the full monthly pay rate for each month of the year. Assume all employees will be paid for the current payroll period by the last day of the current calendar year. 1) The total gross wages for the current payroll period are: a) $203,500 b) $9,250 c) $222,000 d) $18,500 2) The total income tax withheld during the current payroll period is: a) $9,250 b) $606 c) $3,700 d) $2,600 3) The total Social Security tax withheld during the current payroll period is: a) S606 b) $2,600 c) $1,110 d) $52 4) The net wages paid for the current payroll period are: a) 18,500 b) $13,360.50 c) $13,916.50 d) $14,194