Sierra Sports employs several people, but we will look at one specific employee for this example. Billie
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Sierra Sports employs several people, but we will look at one specific employee for this example. Billie Sanders works for Sierra Sports and earns a salary each month of $16,000.
- Withholdings for federal taxes equal $2,000
- Withholdings of state income taxes equal $500.
- FICA Social Security is taxed at the 6.2% rate
- FICA Medicare is taxed at the 1.45% rate.
- Sierra Sports receives the FUTA credit and is only taxed at the rate of 0.6% (as a decimal this is .006)
- SUTA taxes are $300
- Billie has voluntary deductions for health insurance and a 401(k) retirement contribution.
- She is responsible for 40% of her $2,000 healthcare insurance premium;
- Sierra Sports pays the remaining 60% of the health insurance premium(as explained in the employer payroll).
- Billie's 401(k) contributions total $400.
Using the information above, calculate the following:
1) Billie's gross pay
2) Billie's net pay
3) Billie's portion of health insurance
4) Employer's payroll tax expense
5) Employer's portion of health insurance
Please show work and answers.
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