Question
Lake Community College gives its faculty the option of receiving the balance of their contract at the end of the semester on May 17, 20--.
Lake Community College gives its faculty the option of receiving the balance of their contract at the end of the semester on May 17, 20--. The faculty can receive one lump-sum payment instead of receiving the remaining seven biweekly pays over the summer. Use the data given below to complete the Payroll Register on May 17. No employee has reached the OASDI ceiling, and all employees are taking the lump-sum payment. The state withholding rate is 2.0% of total earnings; the city withholding rate is 1.0% of total earnings. The biweekly wage bracket is used for federal income taxes.
To calculate the tax withholdings, you must calculate the rounded tax for each pay and multiply by the number of pays in the lump-sum payment.
Round all values to the nearest cent.
As we go to press, the federal income tax rates for 2023 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2022 federal income tax tables for Manual Systems with Forms W-4 from 2020 or Later with Standard Withholding and 2022 FICA rates have been used.
Click here to access the Wage-Bracket Method Tables.
For Period Ending May 17, 20--
| Employee Name | Filing Status | No. of W/H Allow. | Biweekly Earnings | (a) | Deductions | (f) | ||||
| Total Lump-Sum Payment | (b) FICA | (c) | (d) | (e) | Net | |||||
| OASDI | HI | FIT | SIT | CIT | Pay | |||||
| Kinnery, Thomas | S | N/A | $2,000.00 | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 | $fill in the blank 5 | $fill in the blank 6 | $fill in the blank 7 |
| Matthews, Mary | MFJ | N/A | 2,600.00 | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | fill in the blank 13 | fill in the blank 14 |
| Grace, Catherine | S | N/A | 2,200.00 | fill in the blank 15 | fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 |
| Michael, Sean | S | N/A | 2,060.00 | fill in the blank 22 | fill in the blank 23 | fill in the blank 24 | fill in the blank 25 | fill in the blank 26 | fill in the blank 27 | fill in the blank 28 |
| Totals | $8,860.00 | $fill in the blank 29 | $fill in the blank 30 | $fill in the blank 31 | $fill in the blank 32 | $fill in the blank 33 | $fill in the blank 34 | $fill in the blank 35 |
Compute the employer's FICA taxes for the pay period ending May 17, 20--.
| OASDI Taxes | HI Taxes | |||
| OASDI taxable earnings | $fill in the blank 36 | HI taxable earnings | $fill in the blank 37 | |
| OASDI taxes | $fill in the blank 38 | HI taxes | $fill in the blank 39 |
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Cima Official Exam Practice Kit Financial Accounting And Tax Principles 2008 Edition
Authors: Mike Rogers, John Dunn
4th Edition
0750686901, 978-0750686907
