• Check My WorkCheck My Work

BUSINESS DECISION: TAKE HOME PAY

You are the payroll manager for the Canyon Ridge Resort. Bob Farley, the marketing director, earns a salary of $42,000 per year, payable monthly. He is Married and claims three withholding allowances. His social security number is 462-12-8749.

In addition to federal income tax, social security, and Medicare, Bob pays 2.3% state income tax, % for state disability insurance (both based on gross earnings), $26.15 for term life insurance, $123.74 to the credit union, and $40 to the United Way. Social security tax is 6.2% of wages up to $117,000. Medicare tax is 1.45% of all wages.

Fill out the following payroll voucher for Bob for the month of May.

Do not enter extra spaces in your answers.

Enter the social security number as written.

Write dates using word-form for the month. (E.g., "July 1")

If required, round your answers to the nearest cent. Use percentage method for computing Federal income taxes. Click here for Exhibit 9-1 and Exhibit 9-2

		Canyon Ridge Resort
		Payroll Voucher
Employee:			Tax Filing Status
			Withholding
SSN:			Allowances:
	Full-time Pay Period From to
Primary			Additional
Withholdings:			Withholdings:
Federal income tax	$		Term Life	$
Social security	$		Credit Union	$
Medicare	$		United Way	$
State income tax	$
State disability	$
		Gross Earnings:	$
		- Total Withholdings:	$
		NET PAY	$