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CONGRATULATIONS!!! You recently landed the job of a lifetime! Your gross annual salary is $125,000....

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Accounting

CONGRATULATIONS!!! You recently landed the job of a lifetime! Your gross annual salary is $125,000. Before taxes, $120 is taken out for an HSA (Health Savings Account) each paycheck, followed by medical insurance, which is 3.5%. Taxes (Federal, Social Security, and Medicare) are then taken out of your pay. You currently have 3 roommates, with whom you split rent and bills on a $2275 per month townhouse where utilities (gas, water, electric, cable etc) total another $735. You have an outstanding loan that costs you $250 per month. **Assume there are 2 pay periods (4 weeks) in a month and that you are filing taxes in April 2022. 1.

a. What is your taxable income? (10 points) Gross Salary: $125,000 HSA per paycheck: (2x12) x $120= $2,880 3.5% (medical insurance) x $125,000 = $4,375 Taxable income: 125,000 2,880 4,375 = 117,745

b. How much is taken out ANNUALLY for Federal Taxes? Social Security? Medicare? (10 points) Taxable income x 24% Medicare: HSA + Medical Insurance =$20,827.8 $2,880 + 4,375= $7,255

c. How much money do you have left over at the end of each month after these deductions and expenses are removed? (10 points)

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