Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lee Werner is general manager of Worldwide Salons. During 2024, Werner worked for the company all year at a $12,200 monthly salary. He also earned
Lee Werner is general manager of Worldwide Salons. During 2024, Werner worked for the company all year at a $12,200 monthly salary. He also earned a year-end bonus equal to 20% of his annual salary. Werner's federal income tax withheld during 2024 was $2,928 per month, plus $2,928 on his bonus check. State income tax withheld came to $90 per month, plus $40 on the bonus. FICA tax was withheld on the annual earnings. Werner authorized the following payroll deductions: Charity Fund contribution of 1% of total earnings and life insurance of $40 per month. Requirement 2. Compute Worldwide's total 2024 payroll tax expense for Werner. (Round all amounts to the nearest dollar.) Worldwide incurred payroll tax expense on Werner for FICA tax. The company also paid state unemployment tax and federal unemployment tax. i (Click the icon to view payroll tax rate information.) More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000,2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned
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