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The following summary data for the payroll period ended December 27, 2015, are available for Cayman Coating Co.: Gross pay $ 172,000 FICA tax withholdings
The following summary data for the payroll period ended December 27, 2015, are available for Cayman Coating Co.:
Gross pay | $ | 172,000 |
FICA tax withholdings | ? | |
Income tax withholdings | 20,640 | |
Group hospitalization insurance | 2,540 | |
Employee contributions to pension plan | ? | |
Total deductions | 41,650 | |
Net pay | ? |
Additional information:
- For employees, FICA tax rates for 2015 were 7.65% on the first $118,500 of each employees annual earnings. However, no employees had accumulated earnings for the year in excess of the $118,500 limit.
- For employers, FICA tax rates for 2015 were also 7.65% on the first $118,500 of each employees annual earnings.
- The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied against the employer for the first $7,000 of each employees annual earnings. Only $18,000 of the gross pay amount for the December 27, 2015, pay period was owed to employees who were still under the annual limit.
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