The monthly salaries for December and year to date earnings of employees of Cana

Question

The monthly salaries for December and year to date earnings of employees of Canarelli consulting company as of November 30 follows. Employee one December salary 8,800 year to date earnings through November 30 87,900, employee two December salary is 8,900 year to date earnings to November 30 with 83,450, employee three December salary9, 900 year to date earnings through November 30th, employee number four December salary 6,200 year to date earnings through November 30 67,000, determine the amount of Social Security tax to be withheld from each employee's gross pay for December. Assuming a 6.2% social security tax rate and earning based of 97,500 for the counter year. Exercises 10.4 determine deduction for Medicare tax. Using net earnings that all sours and wages are subject to the tax data given the in exercise 10.3 determine amount of Medicare tax to be withheld from each employee's gross pay for December. Assume a 1.45% Medicare tax rate and that all salaries and wages are subject to the tax.

Explanation / Answer

Salary for December Salary for year Social security tax Medicare tax Employee one $8,800 $96,700 545.60 127.60 Employee two $8,900 $92,350 551.80 129.05 Employees three $9,900 613.80 143.55 Employee four $6,200 $73,200 384.40 89.90 Total $33,800 ====== Since salary of employee number three up to November has not been given in the question, it is presumed that it is below 97,500.

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