For this exercise, use the following tax rates: FICA-Employer and employee, 8% of the first $120,000 of
Question:
For this exercise, use the following tax rates:
FICA-Employer and employee, 8% of the first $120,000 of earnings per employee per calendar year.
State unemployment-4% of the first $8,000 of earnings per employee per calendar year.
Federal unemployment-1% of the first $8,000 of earnings per employee per calendar year.
Federal income tax withholding-10% of each employee's gross earnings, unless otherwise stated.
A weekly payroll summary made from labor time records shows the following data for Pima Company:
Overtime is payable at one-and-a-half times the regular rate of pay and is distributed to all jobs worked on during the period.
If required, round your answers to the nearest cent in all parts.
Determine the income tax and net pay of each employee. The income taxes withheld for each employee amount to 15% of the gross wages.
Introductory Econometrics A Modern Approach
ISBN: 978-0324660548
4th edition
Authors: Jeffrey M. Wooldridge