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Single Taxpayer: Employee Employer Gross Wages 250,000 Federal income tax (W-4) State income tax (M-4) Social Security tax Medicare tax Additional medicare tax Other EE

Single Taxpayer: Employee Employer
Gross Wages 250,000
Federal income tax (W-4)
State income tax (M-4)
Social Security tax
Medicare tax
Additional medicare tax
Other EE deductions Health insurance for example (50% EE/50% ER)
Net pay FUTA @ .6%
SUTA @ 5.4%
Total payroll tax expense

It is very important for all individuals and especially, accounting professionals/CPAs to understand how payroll works.

Use the attached Excel file to complete these payroll tax calculations - proper Excel utilization is required.

Assume the following:

1. Based on the employee's W-4 information, Federal income tax withholdings are 20%.

2. Based on the employee's M-4 information, State income tax withholdings are 5%.

3. The employee's annual health care premiums are $4,800 of which the employer pays half.

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