Question
For each employee listed below, calculate the taxable earnings for Social Security tax for the described pay period. Note that none of these employees exceed
For each employee listed below, calculate the taxable earnings for Social Security tax for the described pay period. Note that none of these employees exceed the Social Security taxable wage base during the year.
For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
1: Devin Moody earned gross pay of $1,450 during a recent pay period. He contributes 11% of gross pay to a 403(b) retirement plan and $100 each pay period to a cafeteria plan.
2: Jaclyn Connor earned gross pay of $1,760 during a recent pay period. She contributes 6% of gross pay to a 401(k) retirement plan and 5% of gross pay to a dependent care flexible spending account.
3: Amy Williams earned gross pay of $990 during a recent pay period. She contributes $75 to a flexible spending account and 5% of gross pay to a separate dependent care flexible spending account.
4: Edward Sorkin earned gross pay of $900 during a recent pay period. He contributes 11% of gross pay to a 401(k) retirement plan.
Step by Step Solution
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Step: 1
1 Taxable earnings for Social Security tax will be 1350 He contributes 11 of gross pay to a 403b ret...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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