Using the following website: 2020-2021 Tax Brackets answer the following questions if you have a job...

  

Transcribed Image Text:

Using the following website: 2020-2021 Tax Brackets answer the following questions if you have a job making $12 per hour and work 40 hours per week, based on the 2020 federal income tax brackets: a) How much money do you gross each pay period (2 weeks in a pay period, 2 pay periods per month)? $ x Use 2 decimal places. b) What is your annual gross pay? $ X Use 2 decimal places. c) Which tax bracket do you fall into for the 2020 tax year? 12 % Tax rate 10% 12% 22% 24% 32% 35% 37% Taxable income bracket $0 to $9,875 $9,876 to $40,125 $40,126 to $85,525 $85,526 to $163,300 $163,301 to $207,350 $207,351 to $518,400 $518,401 or more Tax owed 10% of taxable income $987.50 plus 12% of the amount over $9,875 $4,617.50 plus 22% of the amount over $40,125 $14,605.50 plus 24% of the amount over $85,525 $33,271.50 plus 32% of the amount over $163,300 $47,367.50 plus 35% of the amount over $207,350 $156,235 plus 37% of the amount over $518,400 You have a job with a gross pay of $63,000. Using the website 2020-2021 Federal Tax Brackets, answer the following questions, based on the 2020 Federal Tax Brackets: a) What is your tax bracket? 22 % b) What is the amount paid in taxes for the following brackets: 10% & 12% combined $ x 22% $ x c) How much in total do you pay in Federal Taxes? X Use the following websites to answer the questions: 2020-2021 Federal Tax Brackets Social Security and Medicare Tax You work at a job with an annual gross salary of $37,000. Use the 2020 Federal Tax Bracket information. a) How much do you gross per paycheck? (assume 2 pay periods per month) $ b) How much Federal Tax is taken out of each paycheck? $ Use 2 decimal places. Use 2 decimal places. c) How much Social Security Tax is taken out of each paycheck? $ d) How much Medicare Tax is taken out of each paycheck?$ Use 2 decimal places. e) You are looking at apartments and like one that rents for $1000.00 per month. Do you decide to rent it? Explain your decision. X Use 2 decimal places. Social Security Is Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. We call this annual limit the contribution and benefit base. This amount is also commonly referred to as the taxable maximum. For earnings in 2021, this base is $142,800. The OASDI tax rate for wages paid in 2021 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $142,800 would contribute $8,853.60 to the OASDI program in 2021, and his or her employer would contribute the same amount. The OASDI tax rate for self- employment income in 2021 is 12.4 percent. For Medicare's Hospital Insurance (HI) program, the taxable maximum was the same as that for the OASDI program for 1966-1990. Separate HI taxable maximums of $125,000, $130,200, and $135,000 were applicable in 1991-93, respectively. After 1993, there has been no limitation on HI-taxable earnings. Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons. Using the following website: 2020-2021 Tax Brackets answer the following questions if you have a job making $12 per hour and work 40 hours per week, based on the 2020 federal income tax brackets: a) How much money do you gross each pay period (2 weeks in a pay period, 2 pay periods per month)? $ x Use 2 decimal places. b) What is your annual gross pay? $ X Use 2 decimal places. c) Which tax bracket do you fall into for the 2020 tax year? 12 % Tax rate 10% 12% 22% 24% 32% 35% 37% Taxable income bracket $0 to $9,875 $9,876 to $40,125 $40,126 to $85,525 $85,526 to $163,300 $163,301 to $207,350 $207,351 to $518,400 $518,401 or more Tax owed 10% of taxable income $987.50 plus 12% of the amount over $9,875 $4,617.50 plus 22% of the amount over $40,125 $14,605.50 plus 24% of the amount over $85,525 $33,271.50 plus 32% of the amount over $163,300 $47,367.50 plus 35% of the amount over $207,350 $156,235 plus 37% of the amount over $518,400 You have a job with a gross pay of $63,000. Using the website 2020-2021 Federal Tax Brackets, answer the following questions, based on the 2020 Federal Tax Brackets: a) What is your tax bracket? 22 % b) What is the amount paid in taxes for the following brackets: 10% & 12% combined $ x 22% $ x c) How much in total do you pay in Federal Taxes? X Use the following websites to answer the questions: 2020-2021 Federal Tax Brackets Social Security and Medicare Tax You work at a job with an annual gross salary of $37,000. Use the 2020 Federal Tax Bracket information. a) How much do you gross per paycheck? (assume 2 pay periods per month) $ b) How much Federal Tax is taken out of each paycheck? $ Use 2 decimal places. Use 2 decimal places. c) How much Social Security Tax is taken out of each paycheck? $ d) How much Medicare Tax is taken out of each paycheck?$ Use 2 decimal places. e) You are looking at apartments and like one that rents for $1000.00 per month. Do you decide to rent it? Explain your decision. X Use 2 decimal places. Social Security Is Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. We call this annual limit the contribution and benefit base. This amount is also commonly referred to as the taxable maximum. For earnings in 2021, this base is $142,800. The OASDI tax rate for wages paid in 2021 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $142,800 would contribute $8,853.60 to the OASDI program in 2021, and his or her employer would contribute the same amount. The OASDI tax rate for self- employment income in 2021 is 12.4 percent. For Medicare's Hospital Insurance (HI) program, the taxable maximum was the same as that for the OASDI program for 1966-1990. Separate HI taxable maximums of $125,000, $130,200, and $135,000 were applicable in 1991-93, respectively. After 1993, there has been no limitation on HI-taxable earnings. Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.

Answer rating: 100% (QA)

a To calculate the gross pay per pay period well first calculate the gross pay per month and then di... View the full answer