Question: Round to two decimal places at each calculation. Find the Taxable income for federal income tax withholding = $ Taxable income for social security tax
Round to two decimal places at each calculation. Find the Taxable income for federal income tax withholding = $ Taxable income for social security tax = $ Taxable income for Medicare tax for a,b,c for this question.
1a. An employee works 42 hours (42-40 were overtime hours) during a workweek in December of 2016. He earns $40.50/hour, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $117,900 during the year. He has requested that his employer withhold 7% of gross pay, which is to be contributed to a 403(b) plan.
1b. An employee works 37 regular hours during a workweek in August of 2016. The employee earns a salary of $126,500/year and is exempt from the overtime provisions of the FLSA. To date, he has received no compensation beyond his annual salary. He has requested that his employer withhold 8% of gross pay, which is to be contributed to a 401(k) plan.
1c. An employee works 50 hours (50-40 were overtime hours) during a workweek in December of 2016. He earns $9,500/month, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $109,700 during the year. He has requested that his employer withhold 13% of gross pay to contribute to a403(b)plan.
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