Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Joel, an employee of Cruise Travel, Inc., has gross salary for March of $5,200. The entire amount is under the OASDI limit of $118,500, and
Joel, an employee of Cruise Travel, Inc., has gross salary for March of $5,200. The entire amount is under the OASDI limit of $118,500, and thus subject to FICA. He is also subject to federal income tax at a rate of 29%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry to record employer's payroll tax expense includes a credit to FICA-Medicare Taxes Payable for S150.80. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) O True O False Sean's gross pay fo his month s S8,750 His gr ss year-to-date pay, prior to this month, t taled $112,000 Sean's te for federal ncome tax s 28%. His voluntary deductions total $1,500. What is Sean's net pay? Assume an OASDI rate of 6.2 applicable on the first S 118,500 earnings, and a Medicare rate o 1.45%, applicable on all earnings. Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) A $5,770 O B. $6,300 O C. $4,800 OD $4,270
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started