The payroll for Asus Computer Distributors, Inc. for the week ended April 30, 20
ID: 2485532 • Letter: T
Question
The payroll for Asus Computer Distributors, Inc. for the week ended April 30, 2016, was as follows:Total payroll was $48,000, none of which is exempt from Social Security taxes.Federal income taxes in the amount of $8,000 and state income taxes in the amount of $3,600 were withheld, as was $900 in union dues.The state unemployment rate is 3.5%, but Asus is allowed a credit of 2.3% by the state for its unemployment experience.Also assume the current FICA tax rate is 7.65% on an employee’s wages up to a limit of $113,700. Amounts in excess of $113,700 are subject to a 1.45% Medicare withholding tax.The federal unemployment tax rate is 1.0%.Based on this information, how much will the employees of Asus take home for the week ended April 30, 2016?
$36,500
$32,728
$29,036
$31,828
Explanation / Answer
the employees of Asus take home for the week ended April 30, 2016=
Total payroll was $48,000 - (Federal income taxes $8000 + state income taxes $3600 + union dues $900 + FICA tax 48000 * 7.65%) = $31828 (option 4th)
=> No unemployment taxes for employees and no medicare tax being less than $113700
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