Question

Question: You can work 40 hours per pay period while attending school earning $12.50 an hour. There are two pay periods per month. NOW Assume you have deductions for health care of $25 per pay period and 401K deduction of $50 per pay period. These deductions are pretax.
Gross Pay per pay period: $
Taxable Income per pay period:

You pay 11% in federal taxes. Federal tax withholding per pay period: $

___

Use the state tax rates below and calculate State tax withholding per pay period: $
(round to two decimals)

_____

From the image:

Calculate FICA withholding per pay period: $

Calculate Medicare withholding per pay period: $
(round to two decimals)

What is your Net pay per pay period: $
​​​​​​​(round to two decimals)

Answer 1

1) Based on the information, the following taxation calculations can be made:

a) Gross Pay per pay period: $500

b) Taxable Income per pay period: $425

c) Since you pay 11% in federal taxes, the Federal tax withholding per pay period is $46.75.

2) The State tax withholding per pay period is $20.

3) The calculation of FICA, Medicare, and the Net Pay per pay period is as follows:

FICA withholding per pay period: $25.50

Medicare withholding per pay period: $6.16

Net Pay per pay period = $326.59

Data and Calculations:

Total hours worked per pay period = 40 hours

Rate per hour = $12.50

Pay periods per month = 2

Gross pay per pay period = $500 (40 x $12.50)

Deductions per pay period:

Health care = $25

401K deduction = $50

Total deductions per pay period = $75

Taxable income per pay period = $425 ($500 - $75)

Federal taxes = 11%

Federal tax withholding per pay period: $46.75 ($425 x 11%)

Annual taxable income = $10,200 ($425 x 24)

State withholding tax (annual) = $480 {$120 + ($10,200 - $5,000) x 5%}

State withholding tax per pay period = $20 ($480/24)

FICA withholding per pay period: $25.50 ($425 x 6.2%)

Medicare withholding per pay period: $6.16 ($425 x 1.45%)

Net Pay per pay period:

Gross Pay $500

Total deductions $75

Taxable income = $425

Federal Withholding = $46.75

State Withholding = $20

]FICA Withholding = $25.50

Medicare Withholding = $6.16

Net Pay per pay period = $326.59

Learn more about computing the net pay at brainly.com/question/15858747

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