Exercise I-2 Employee earnings records for Slaymaker Company reveal the followin

Question

Exercise I-2

Employee earnings records for Slaymaker Company reveal the following gross earnings for four employees through the pay period of December 15.

For the pay period ending December 31, each employee’s gross earnings is $4,300. The FICA tax rate is 7.65% on gross earnings up to $117,000.

Compute the FICA withholdings that should be made for each employee for the December 31 pay period. (Round answers to 2 decimal places, e.g. 15.25.)

T. Olson

Im not understanding how to get the answer.

Explanation / Answer

FICA Withholdings J. Seligman - $4,300 X 7.65%                 328.95 R. Eby - ($117,000 - $114,600) X 7.65%                 183.60 L. Marshall - ($117,000 - $114,100) X 7.65%                 221.85 T. Olson                          -   Total FICA Withholdings                 734.40

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.