Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 30 6 pts Stoney Black is a new assistant professor of pageantry arts at the Hollywood Upstairs Medicare College. Given the following information, how

image text in transcribed
image text in transcribed
Question 30 6 pts Stoney Black is a new assistant professor of pageantry arts at the Hollywood Upstairs Medicare College. Given the following information, how much CASH does Stoney receive this year from the college in his paychecks? Round you answer to the nearest dollar. . Note: Stoney does not receive any retirement fund cash until he retires, which is at least 40 years in the future. His salary is $140,000. . The college agrees to contribute an amount equal to 7% of Stoney's academic year salary into a retirement fund. Stoney acquires legal title to these retirement contributions only if he stays at the college for four years or more. Note: This retirement money is NOT withheld from Stoney's salary; this is additional money that comes from the college.-Historically, approximately 70 percent of new assistant professors have remained with the college at least four years. The combined FUI and SUI rate for the college is 5%. The college withholds $2,600 per year from Stoney's salary as his contribution to medical coverage. The college pays a health insurance company $5,600 per year per employee for medical coverage. Stoney has a term life insurance policy through the college because of the favorable group rate he can get. The $2,000 per year cost is withheld from his salary. If he were to get the same insurance on his own, it would cost $2,500. The Social Security tax rate is 6.20%. This amount is withheld from just the first $100,000 of Stoney's salary and amounts earned above $100,000 are not subject to Social Security tax. In addition, the college must match this amount and pay it to the federal government. The Medicare tax rate is 1.45%. This amount is withheld from all of Stoney's $140,000 salary. In addition, the college must match this amount and pay it to the federal government. . Federal income taxes totaling 20% of Stoney's $140,000 salary are withheld from his pay. $99,170 $112,000 $92,310 $140,000 O $180,830

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Management

Authors: Geert Bekaert, Robert J. Hodrick

2nd edition

013299755X, 132162768, 9780132997553, 978-0132162760

More Books

Students also viewed these Accounting questions