The payroll account for Presto Manufacturing Cupcakery has been assigned to you, and you are to complete the payroll for Sam, one of their employees. Sam is married, claims 2 withholding allowances, and earns $1,650 semimonthly. In addition to Federal Income taxes, Social Security, and Medicare, he pays 5.7% in NYS income tax (based on gross income), $157.50 for a family health plan per paycheck, $13.50 for life insurance, contributes 8% of his earnings to a 401K, and has his car payment of $110 auto deducted.

Presto Manufacturing pays unemployment at a rate of 3.4%, Federal Unemployment at a rate of 0.8%, and matches their employee's Social Security and Medicare taxes.

1. Using your notes and the tax tables (EX 9-1 and 9-2) in the PowerPoint and eBook, calculate Sam’s take-home pay. Show and label your calculations for each deduction in the table below.

2. Using the given case information, calculate the amount that Presto Manufacturing must pay for the payroll taxes for Sam in the table on page

Employee Take-Home Pay Chart
Tax or Deduction	Calculation	Tax or Deduction Amount
Federal Income Tax
Social Security Tax (6.2%)
Medicare Tax (1.45%)
NYS Income Tax
Health Plan
Life Insurance
401K
Car Payment
Total Tax and Deductions:
Sam’s Take Home Pay:

2. Employer Payroll Tax Chart
Tax	Calculation	Tax Amount
NYS Employment Tax (3.4%)
Federal Unemployment Tax (0.8%)
Social Security (matched)
Medicare (matched)
Presto’s Total Payroll Taxes for Sam

  

Percentage Method Tables for Income Tax Withholding (For Wages Paid in 20XX) TABLE 1-WEEKLY Payroll Period (b) MARRIED person- If the amount of wages (after subtracting withholding allowances) is: Not over $222 . (a) SINGLE person (including head of household)- If the amount of wages (after subtracting withholding allowances) is: Not over $71 .. The amount of income tax to withhold is: The amount of income tax to withhold is: ...$0 ...$0 Over- $71 $254 $815 $1,658 3,100 $3,917 $9,687 of excess over- Over- -$71 -$254 -$815 --$1,658 -$3,100 -43,917 -39,687 of excess over- -$222 But not over- But not over- -$254 -$815 -$1,658 -$3,100 -$3,917 -$9,687 $0.00 plus 10% $18.30 plus 12% $85.62 plus 22% $271.08 plus 24% .$617.16 plus 32% $878.60 plus 35% $2,898.10 plus 37% $222 $588 $1,711 $3,395 $6,280 $7,914 $11,761 -$588 -$1,711 -$3,395 -$6,280 -$7,914 -$11,761 $0.00 plus 10% 36.60 plus 12% $171.36 plus 22% $541.84 plus 24% $1,234.24 plus 32% $1,757.12 plus 35% $3,103.57 plus 37% ..... -$588 -$1,711 -$3,395 -$6,280 -$7,914 -$11,761 ...... ....... TABLE 2-BIWEEKLY Payroll Period (a) SINGLE person (including head of household)- If the amount of wages (after subtracting withholding allowances) is: Not over $142 .. (b) MARRIED person- If the amount of wages (after subtracting withholding allowances) is: Not over $444 . The amount of income tax to withhold is: The amount of income tax to withhold is: ...s0 ...s0 of excess over- Over- -$142 -$509 -$1,631 -$3,315 -$6,200 -$7,835 -$19,373 Over- But not over- But not over- of excess over- $142 $509 $1,631 $3,315 $6,200 $7,835 $19,373 .$0.00 plus 10% $36.70 plus 12% $171.34 plus 22% $541.82 plus 24% $1,234.22 plus 32% $1,757.42 plus 35% $5,795.72 plus 37% $0.00 plus 10% $73.30 plus 12% $342.58 plus 22% $1,083.76 plus 24% $2,468.56 plus 32% $3,514.64 plus 35% $6,206.84 plus 37% -$509 -$1,631 -$3,315 -$6,200 -$7,835 -$19,373 $444 $1,177 $3,421 $6,790 $12,560 $15,829 $23,521 -$1,177 -$3,421 -$6,790 -$12,560 -$15,829 -$23,521 -$444 -$1,177 -$3,421 -$6,790 -$12,560 -$15,829 -$23,521 ....... a..... ...... ........