1/ Portia Grant is an employee who is paid monthly. For the month of January of
ID: 2560357 • Letter: 1
Question
1/ Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $8,538. The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,416.67. What is the total amount of taxes withheld from the Portia's earnings? (Round your intermediate calculations to two decimal places.) Multiple Choice $2,069.83 $1,972.00 $3,388.67 $2,503.83 $1,540.47
2/An employee earns $6,400 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $218 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $186 and contributes $93 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? (Round your intermediate calculations to two decimal places.)
Multiple Choice
$5,413.40
$5,506.20
$5,067.80
$5,016.60
$5,362.20
Explanation / Answer
1 Social Security taxes 529.36 =8538*6.2% Medicare taxes 123.80 =8538*1.45% Federal income tax 1416.67 Total amount of taxes withheld 2069.83 Option 1 is correct 2 Gross pay 6400 Deductions: Social Security taxes 396.8 Medicare taxes 92.8 Federal income tax 218 Health insurance 186 Retirement plan 93 986.6 Net pay 5413.4 Option 1 is correct
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