The monthly salaries for December and the year-to-date earnings of the employees of Bush Consulting Company as of November 30 follow. Determine the amount of social security tax to be withheld from each employee's gross pay for December. Assume a 6.2 percent social security tax rate and an earnings base of $132,900 for the calendar year. Year-to-Date Soc. Sec. No. Employee December Salary Earnings Taxable Through Earnings November 30 December 1 $ 10,900 $ 100,000 2 11,000 71,000 3 10,560 116,160 4 11,000 101,000 Social Security Tax 6.20%
The monthly salaries for December and the year-to-date earnings of the employees of Bush Consulting Company as of November 30 follow. Determine the amount of social security tax to be withheld from each employee's gross pay for December. Assume a 6.2 percent social security tax rate and an earnings base of $132,900 for the calendar year. Year-to-Date Soc. Sec. No. Employee December Salary Earnings Taxable Through Earnings November 30 December 1 $ 10,900 $ 100,000 2 11,000 71,000 3 10,560 116,160 4 11,000 101,000 Social Security Tax 6.20%
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 3SEA: CALCULATION OF TAXABLE EARNINGS AND EMPLOYER PAYROLL TAXES AND PREPARATION OF JOURNAL ENTRY Selected...
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