Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. an employee earns $5,500 per month working for an

An employee earns $5,500 per month working for an employer. The FICA tax rate for...

60.1K

Verified Solution

Question

Accounting

image
An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $132.900 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 $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 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 $4.827.00 $4,386,25 $4,628.25 0 $4,672.25 $4,430.25

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students