Answer:
Total wage payment………………………………………… $1,400.00
Less: Federal income tax withholding………………… $247.90
Social security tax ($1,400 × 6%)……………… 84.00
Medicare tax ($1,400 × 1.5%)……………………… 21.00 352.90
Net pay…………………………………………………………… $1,047.10
PE 11-3B Employee net pay
Todd Thompson’s weekly gross earnings for the week ended May 23 were $1,400, and his federal income tax withholding was $247.90. Assuming the social security rate is 6% and Medicare is 1.5% of all earnings, what is Thompson’s net pay?
Answer:
Total wage payment………………………………………… $1,400.00
Less: Federal income tax withholding………………… $247.90
Social security tax ($1,400 × 6%)……………… 84.00
Medicare tax ($1,400 × 1.5%)……………………… 21.00 352.90
Net pay…………………………………………………………… $1,047.10
Answer:
Total wage payment………………………………………… $1,400.00
Less: Federal income tax withholding………………… $247.90
Social security tax ($1,400 × 6%)……………… 84.00
Medicare tax ($1,400 × 1.5%)……………………… 21.00 352.90
Net pay…………………………………………………………… $1,047.10