Score: 0 of 3 pts 5 of 6 (4 comp P11-26A (similar to) Liam Wallace is general ma

Question

Score: 0 of 3 pts 5 of 6 (4 comp P11-26A (similar to) Liam Wallace is general manager of Countrywide Salons. During 2018, Wallace worked for the company all Co year at a $10,600 monthly salary. He also earned a year-end bonus equal to 15% of his annual salary. Wallace's federal income tax withheld during 2018 was $1,272 per month, plus $2,862 on his bonus check. State income tax withheld came to $170 per month, plus $50 on the bonus. FICA tax was withheld on the annual earnings. Wallace authorized the following payroll deductions: Charity Fund contribution of 2% of total earnings and life insurance of $45 per month. un Re Requirement 1. Compute Wallace's gross pay, payroll deductions, and net pay for the full year 2018. Round all a Begin by computing Wallace's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Gross Pay

Explanation / Answer

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1. Gross Pay Salary 127200 (10,600*12) Bonus 19080 (15% of 127,200) Gross Pay 146280 OASDI deduction:                       7,347 6.2% on $118,500 Medicare tax                       1,844 (1.45% on 127,200) Federal income tax deduction On salary (1,272 x 12)                     15,264 On bonus                       2,862 Total federal income tax deduction                     18,126 State Income tax withheld On salary (170 x 12)                       2,040 On bonus                             50                       2,090 Charity fund contribution 2% of total earnings                       2,544 Life insurance 45 x 12                           540 Total amount of deductions                     32,491 Net pay 113,789

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