Question
Robert Donaruma's business, Donaruma Investments Incorporated, has 5 employees who are paid one week after the week they work. As of September 8, each employee's
Robert Donaruma's business, Donaruma Investments Incorporated, has 5 employees who are paid one week after the week they work. As of September 8, each employee's gross earnings for the year were as follows.
Almeida | $140,000 |
Curotto | $117,500 |
Forte | $28,000 |
LaMarca | $6,800 |
Pidgeon | $2,000 |
For this year, the OASDI FICA tax rate is 6.2% of the first $118,500 of each employees gross pay. The Medicare FICA tax rate is 1.45% of each employees gross pay. Each employee has $3 withheld weekly for union dues. Calculate the net pay for Donaruma Investment Incorporateds employee Almeida for the week ended September 15. Almeida currently earns a salary of $3,500 per week. In addition to FICA taxes and union dues, the following were withheld from Almeidas weekly earnings: $700 for federal income taxes and $175 for state income taxes.
a. | $2,571.25 | |
b. | $2,354.25 | |
c. | $4,428.75 | |
d. | $2,622.00 | |
e. | $3,500.00 |
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