PSb 4-1 Calculate Taxable Earnings for Social Security Tax

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.

NOTE:For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:

Dustin Woodward earned gross pay of $2,200 during a recent pay period. He contributes 8% of gross pay to a 403(b) retirement plan and $50 each pay period to a cafeteria plan.

Taxable earnings = $

2:

Olivia Sutter earned gross pay of $950 during a recent pay period. She contributes 5% of gross pay to a 401(k) retirement plan and 1% of gross pay to a dependent care flexible spending account.

Taxable earnings = $

3:

Ana Grantham earned gross pay of $1,420 during a recent pay period. She contributes $40 to a flexible spending account and 2.5% of gross pay to a separate dependent care flexible spending account.

Taxable earnings = $

4:

Paul Bernstein earned gross pay of $1,100 during a recent pay period. He contributes 14% of gross pay to a 401(k) retirement plan.

Taxable earnings = $