Zippy, LLC has one employee who has worked January-June of the current year. The

Question

Zippy, LLC has one employee who has worked January-June of the current year. The employee is single, paid weekly, and claims three allowances on her W-2. The company is in a state that has no state income taxes. The FICA Social Security tax rate is 6.2% on the first $118,500 of wages and the FICA Medicare tax rate is 1.45% on all wages. Zippy, LLC's FUTA tax rate is 0.6% on the first $7,000 of wages and their SUTA tax rate is 2.3% on the first $8,000 of wages. The employee's earnings thus far are as follows: Gross pay Jan-May $7,500 Gross pay for June $1,300 a) Use the information above and the IRS tax table (click to pop open) to calculate all of the taxes that should be withheld from the employees paycheck and her net pay for June. Round values to 2 decimal places if needed 3 4 5 6 7 8 Y U

Explanation / Answer

ans a Gross Pay $1,300 Federal Withholding 134 FICA-SS (1300*6.2%) $80.60 FICA-Medicare (1300*1.45%) $18.85 Net pay $1,067 ans b Salaries expenses 1300 Federal Withholding Payable $134.00 FICA-SS Payable $80.60 FICA-Medicare Payable $18.85 Net pay $1,066.55 Tax table is not provided so taken for 2016 ans c FICA $80.60 Medicare $18.85 FUTA (as exceedec $7000 wages) 0 SUTA 8000-7500*2.3% 11.50 Total ER taxes $110.95 ans d Payroll tax expenses $110.95 FICA-SS Payable $80.60 FICA-Medicare Payable $18.85 SUTA payable 11.50

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