Question
is general manager of NationalNational Salons. During 2016, Worthington worked for the company all year at a $12,200 monthly salary. He also earned a year-end
is general manager of
NationalNational
Salons. During
2016,
Worthington
worked for the company all year at a
$12,200
monthly salary. He also earned a year-end bonus equal to
10%
of his annual salary.
Worthington
federal income tax withheld during
2016
was
$976
per month, plus
$1,464
on his bonus check. State income tax withheld came to
$140
per month, plus
$120
on the bonus. FICA tax was withheld on the annual earnings.
Worthington
authorized the following payroll deductions: Charity Fund contribution of
44%
of total earnings and life insurance of
$ 25
per month.
For all payroll calculations, use the following tax rates and round amounts to the nearest cent:
Employee: | OASDI: 6.2% on first$117,000 earned; Medicare:1.45% up to$200,000, 2.35% on earnings above$200,000. |
Employer: | OASDI: 6.2.% on first$117,000 earned; Medicare:1.45% on allearnings; FUTA:0.6% on first$7,000 earned; SUTA:5.4% on first$7,000 earned. Compute WorthingtonWorthington's gross pay, payroll deductions, and net pay for the full year 20162016. Round all amounts to the nearest dollar. Begin by computing WorthingtonWorthington's gross pay for the year Now compute WorthingtonWorthington's payroll deductions and net pay for the year withholding's deductions net take home pay
|
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