PROBLEM DATA Reno Graphics has five employees, and they are paid at the end of each...

 

Transcribed Image Text:

PROBLEM DATA Reno Graphics has five employees, and they are paid at the end of each month. Payroll data for November are as follows: Employee Jones Miller Smith Williams Zlotorzynski Gross Pay for Federal Income Cumulative Gross Pay at November Tax Withheld October 31 $9,000 $1,948 $ ? 1,530 137 15,570 1,210 89 6,550 12,000 2,788 120,000 4,200 661 55,000 Other information (using 2011 rates) is as follows: a. Social security taxes are 4.2% of monthly gross pay up to a cumulative total pay of $106,800 for 2011. Employers must pay 6.2% of monthly gross pay up to a cumulative total pay of $106,800 for each employee. b. Medicare taxes are 1.45% on monthly gross pay with no upper limit. c. A $25 monthly deduction is made for union dues for all union members. d. Unemployment taxes are paid on mnthly gross pay up to the first $7,000 earned by each employee each year. State and federal rates are 2.7% and .8%, respectively. REQUIREMENT 1. Based on 2011 tax rates provided, use a calculator to compute how much would be withheld from Jones's November paycheck in the following three cases (round to the nearest penny): PROBLEM DATA Reno Graphics has five employees, and they are paid at the end of each month. Payroll data for November are as follows: Employee Jones Miller Smith Williams Zlotorzynski Gross Pay for Federal Income Cumulative Gross Pay at November Tax Withheld October 31 $9,000 $1,948 $ ? 1,530 137 15,570 1,210 89 6,550 12,000 2,788 120,000 4,200 661 55,000 Other information (using 2011 rates) is as follows: a. Social security taxes are 4.2% of monthly gross pay up to a cumulative total pay of $106,800 for 2011. Employers must pay 6.2% of monthly gross pay up to a cumulative total pay of $106,800 for each employee. b. Medicare taxes are 1.45% on monthly gross pay with no upper limit. c. A $25 monthly deduction is made for union dues for all union members. d. Unemployment taxes are paid on mnthly gross pay up to the first $7,000 earned by each employee each year. State and federal rates are 2.7% and .8%, respectively. REQUIREMENT 1. Based on 2011 tax rates provided, use a calculator to compute how much would be withheld from Jones's November paycheck in the following three cases (round to the nearest penny):