Question
During 2020, Ed Bailey earned a monthly salary of $19,000. Eds income tax rate was 35%. FICA tax was levied at a 6.2% rate (Social
During 2020, Ed Bailey earned a monthly salary of $19,000. Eds income tax rate was 35%. FICA tax was levied at a 6.2% rate (Social Security) on the first $137,700 of annual earnings and a 1.45% rate (Medicare) was applied to all annual earnings. The combined FUTA/SUTA tax rate was 6.0% on the first $7,000 of annual earnings. Ed was employed as of January 1st, 2020.
For August 2020, what was Eds net pay and what was his employer's payroll tax obligation:
(a)
Net Pay Payroll Tax
11,783.10 566.90
(b)
11,783.10 986.90
(c)
10,896,60 1,453.50
(d)
11,363.60 986.90
(e)
11,363.60 566.50
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