[The following information applies to the questions displayed below.] The following summary data for the payroll period...

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Accounting

[The following information applies to the questionsdisplayed below.]

The following summary data for the payroll period ended December27, 2015, are available for Cayman Coating Co.:
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Gross pay $ 172,000
FICA tax withholdings ?
Income tax withholdings 20,640
Group hospitalization insurance 2,540
Employee contributions to pension plan ?
Total deductions 41,650
Net pay ?
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Additional information:
For employees, FICA tax rates for 2015 were 7.65% on the first$118,500 of each employeeâ€™s annual earnings. However, no employeeshad accumulated earnings for the year in excess of the $118,500limit.
For employers, FICA tax rates for 2015 were also 7.65% on thefirst $118,500 of each employeeâ€™s annual earnings.
The federal and state unemployment compensation tax rates are0.6% and 5.4%, respectively. These rates are levied against theemployer for the first $7,000 of each employeeâ€™s annual earnings.Only $18,000 of the gross pay amount for the December 27, 2015, payperiod was owed to employees who were still under the annuallimit.

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3.6 Ratings (295 Votes)

Gross pay 17200000 FICA tax withholdings 172000 x 765 1315800 Income tax withholdings 2064000 Group hospitalization insurance 254000 Employee contributions to See Answer

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Gross pay	$	172,000
FICA tax withholdings		?
Income tax withholdings		20,640
Group hospitalization insurance		2,540
Employee contributions to pension plan		?
Total deductions		41,650
Net pay		?