Question

The payroll records of Speedy Software show the following information about Marsha Gottschalk, an employee, for the weekly pay period ending September 30, 2017. Gottschalk is single and claims one allowance. Compute her Social Security tax (6.2%), Medicare tax (1.45%), federal income tax withholding, state income tax (1.0%), and net pay for the current pay period.
Total (gross) earnings for current pay period $620
Cumulative earnings of previous pay periods $8,060

Answer 1

Answer:

The Social Security Tax is $38.44

The Medicare Tax is $8.99

The Federal Income Tax withholding is $70.00

The Income Tax is $6.2

The Net Pay is $496.37

Explanation:

Use the following formula to calculate the Social Security Tax

Social Security Tax = Gross Pay  x Social Security tax rate = $620 x 6.2% = $38.44

Use the following formula to calculate the Medicare Tax withholding

Medicare Tax = Gross Pay  x Medicare tax rate = $620 x 1.45% = $8.99

Federal Income Tax withholding = $70.00 ( From the attached Table )

Use the following formula to calculate the Income Tax

Income Tax = Gross Pay x Income tax rate = $620 x 1% = $6.2

Use the following formula to calculate the net pay

Net Pay = Gross Pay - Social Security Tax - Medicare Tax - Federal Income Tax withholdiing - Income Tax = $620 - $38.44 - $8.99 - $70.00 - $6.2 = $496.37