Pat Maninen earns a gross salary of $2,400 each week. Assume a rate of 6.2% on $
ID: 3216203 • Letter: P
Question
Pat Maninen earns a gross salary of $2,400 each week. Assume a rate of 6.2% on $118,500 for Social Security and 1.45% for Medicare.
a. What are Pat’s first week’s deductions for Social Security and Medicare? (Round your answers to the nearest cent.)
b. Will any of Pat’s wages be exempt from Social Security and Medicare for the calendar year? (Leave no cells blank - be certain to enter "0" wherever required.)
Westway Company pays Suzie Chan $3,100 per week. Assume Social Security is 6.2% on $118,500 and 1.45% for Medicare.
a. By the end of week 52, how much did Westway deduct for Suzie's Social Security and Medicare for the year? (Round your answers to the nearest cent.)
b. What state and federal unemployment taxes does Westway pay on Suzie's yearly salary? The state unemployment rate is 5.1% and the federal unemployment tax is 0.6% on the first $7,000.
a. What is Sandy’s net pay after FIT (use the Table 9.1 and Table 9.2), Social Security tax, state income tax, and Medicare have been taken out? (Round your answer to the nearest cent.)
Sandy’s net pay after FIT $
b. What is George’s net pay after the same deductions? (Round your answer to the nearest cent.)
George’s net pay after FIT $
c. How much more is Sandy’s net pay versus George’s net pay? (Round your answer to the nearest cent.)
Difference in net pay $
Deductions Social Security $ Medicare $Explanation / Answer
1) Pat Maninen:
gross salary= $2,400 each week= $ 124800
Social Security rate is 6.2% on $118,500 and Medicare rate is1.45%. This expressed for one year. For one month, the rate is 6.2/52 = 0.12% on 118500/52= $2278.85 for Social Security and 0.03% for Medicare.
a. Pat’s first week’s deductions for Social Security and Medicare.
$2278.85*0.0012
= $2.74
$2278.85*0.0003
= $0.68
b. Pat’s wages exempted from Social Security and Medicare for the calendar year
2) Westway Company pays Suzie Chan $3,100 per week.
Social Security is 6.2% on $118,500 and 1.45% for Medicare.
a. By the end of week 52, Westway deduct for Suzie's Social Security and Medicare for the year.
Since the annual income has exceeded $118,500, the Social Security deduction will be 6.2% of $118500 and for Medicare is 1.45% of $118500, which is $7347 and $1718.25
b. The state unemployment rate is 5.1% and the federal unemployment tax is 0.6% on the first $7,000.
3) Sandy Denny earns $7.30 per hour; George Barney earns $5.80 per hour.
They both worked 36 hours this week.
Therefore, Sandy Denny earns $7.30 *36 = $262.80; George Barney earns $5.80 *36= $208.8.
Both are married; however, Sandy claims 2 exemptions and George claims 1 exemption.
Social Security rate is 6.2% on $118,500 and Medicare rate is1.45%. This expressed for one year. For one week, the rate is 6.2/52 = 0.12% on 118500/52= $2278.85 for Social Security and 0.03% for Medicare. California has a state income tax of 9% per year = 0.17% per week.
a. What is Sandy’s net pay after FIT (use the Table 9.1 and Table 9.2), Social Security tax, state income tax, and Medicare have been taken out? (Round your answer to the nearest cent.)
Sandy’s net pay after FIT = 262.80-[(0.1*($262.80-165))+(0.012*262.80)+(0.003*262.80) +(0.0017*262.80) ]
= $248.91
b. George’s net pay after the same deductions,
George’s net pay after FIT = 208.80-[(0.1*($208.80-165))+(0.012*208.80)+(0.003*208.80) +(0.0017*208.80) ]
= $200.93
c. How much more is Sandy’s net pay versus George’s net pay? (Round your answer to the nearest cent.)
Difference in net pay = $248.91 - $200.93 = $47.98
Deductions Social Security$2278.85*0.0012
= $2.74
Medicare$2278.85*0.0003
= $0.68