Answer:
Total wage payment…………………………………………… $2,600.00
Less: Federal income tax withholding………………… $554.76
Social security tax ($2,600 × 6%)………………… 156.00
Medicare tax ($2,600 × 1.5%)…………………… 39.00 749.76
Net pay………………………………………………………… $1,850.24
PE 11-3A Employee net pay
Bella Chen’s weekly gross earnings for the week ended October 20 were $2,600, and her federal income tax withholding was $554.76. Assuming the social security rate is 6% and Medicare is 1.5% of all earnings, what is Chen’s net pay?
Answer:
Total wage payment…………………………………………… $2,600.00
Less: Federal income tax withholding………………… $554.76
Social security tax ($2,600 × 6%)………………… 156.00
Medicare tax ($2,600 × 1.5%)…………………… 39.00 749.76
Net pay………………………………………………………… $1,850.24
Answer:
Total wage payment…………………………………………… $2,600.00
Less: Federal income tax withholding………………… $554.76
Social security tax ($2,600 × 6%)………………… 156.00
Medicare tax ($2,600 × 1.5%)…………………… 39.00 749.76
Net pay………………………………………………………… $1,850.24