Exam 5: Employee Net Pay and Pay Methods

Amanda is a full-time exempt employee in Sparks, Nevada, who earns $84,000 annually. She is married with 1 deduction and is paid biweekly. She contributes $150.00 per pay period to her 401(k) and has pre-tax health insurance and AFLAC deductions of $50.00 and $75.00, respectively. Amanda contributes $25.00 Per pay period to the United Way. What is her net pay? (Use the percentage method. Do not round intermediate calculations. Round final answers to 2 decimal Places.) Table 5. Percentage Method-2019 Amount for one Withholding Allowance Payroll Period One Withholding Allowance Weekly $80.80 Biweekly 161.50 Semimonthly 175.00 Monthly 350.00 Quarterly 1,050.00 Semiannually 2,100.00 Annually 4,200.00 Daily or miscellaneous (each day of the payroll period) 16.20 TABLE 2-BIWEEKLY Payroll Period (a) SINGLE person (including head of household)- (b) MARRIED person- If the amount of wages (after If the amount of wages (after Subtracting withholding subtracting withholding Allowances) is: The amount of income tax to withhold is: allowances) is: The amount of income tax to withhold is Not over $146...... $0 Not over $454...... $0 Over- But not over- of excess over- Over- But not over- of excess ov $ 146 -$ 519 $ 0.00 plus 10% -$ 146 $ 454 -$ 1,200 $ 0.00 plus 10% $ 519 -$ 1,664 $ 37.30 plus 12% -$ 519 $ 1,200 -$ 3,490 $ 74.60 plus 12% $ 1,664 -$ 3,385 $ 174.70 plus 22% -$ 1,664 $ 3,490 -$ 6,931 $ 349.40 plus 22% $ 3,385 -$ 6,328 $ 553.32 plus 24% -$ 3,385 $ 6,931 -$ 12,817 $ 1,106.42 plus 24% $ 6,328 -$ 7,996 $ 1,259.264 plus 32% -$ 6,328 $ 12,817 -$ 16,154 $ 2,519.06 plus 32% $ 7,996 -$ 19,773 $ 1,793.40 plus 35% -$ 7,996 $ 16,154 -$ 24,006 $ 3,586.90 plus 35% $ 19,773 $ 5,915.35 plus 37% -$ 19,773 $ 24,006 $ 6,335.10 plus 37%

Why do employers use checks as an employment payment method?

Steve is a full-time exempt employee at a local electricity co-operative. He earns an annual salary of $43,325 and is paid biweekly. What is his Social Security tax deduction for each pay period? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

The annual payroll tax guide that the IRS distributes is called ________.

Amity is an employee with a period gross pay of $2,000. She elects to have 3% of her gross pay withheld for her 401(k) contribution. What will be her taxable income be for federal income taxes?

Which of the following payment methods is growing in popularity among employees?

Which are steps in the net pay computation process? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a Question mark will be automatically graded as incorrect.)

Which of the following statements is/are true about Social Security tax deductions from gross pay? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box For a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

The factors that determine an employee's federal income tax are ________.

The amount of federal income tax decreases as the number of allowances increases.

Social Security tax has a wage base, which is the minimum amount an employee must earn before they will have the Social Security tax deduction.

What is a disadvantage to using paycards as a method of transmitting employee compensation?

Charitable contributions are an example of post-tax voluntary deductions.

Andie earned $680.20 during the most recent weekly pay period. She is single with 3 withholding allowances and needs to decide between contributing 2.5% and $25 to her 401(k) plan. If she chooses the method that results in the lowest taxable income, how much will be withheld for Federal income tax (based on The following table)? Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons-WEEKLY Payroll Period (For Wages Paid through December 2019) And the wages are And the number of withholding allowances claimed is- At least But lessthan 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is-

Trish earned $1,734.90 during the most recent semimonthly pay period. She is married and has 3 withholding allowances and has no pre-tax deductions. Based on the following table, how much should be withheld from her gross pay for Federal income tax? Wage Bracket Method Tables for Income Tax Withholding MARRIED Persons-SEMIMONTHLY Payroll Period (For Wages Paid through December 2019) And the wages are And the number of withholding allowances claimed is- At least But lessthan 0 1 2 3The amount of income tax to be withheld is-4 5 6 7 8 9 10

Which of the following states do not have state income tax deducted from employee pay? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a Wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Tierney is a full-time nonexempt salaried employee who earns $990 per biweekly pay period. She is single with 1 withholding allowance and both lives and works in Bowling Green, Kentucky. Assuming that she had no overtime, what is the total of her Federal and state taxes for a pay period? (Use the wage-bracket Tables. Kentucky state income rate is 5.00%. Round final answer to 2 decimal places.) Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons-BIWEEKLY Payroll Period (For Wages Paid through December 2019) And the wages are And the number of withholding allowances claimed is- At least But lessthan 0 1 2 3The amount of income tax to be withheld is-4 5 6 7 8 9 10

Caroljane earned $1,120 during the most recent pay biweekly pay period. She contributes 4% of her gross pay to her 401(k) plan. She is single and has 1 withholding allowance. Based on the following table, how much Federal income tax should be withheld from her pay? Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons-BIWEEKLY Payroll Period (For Wages Paid through December 2019) And the wages are And the number of withholding allowances claimed is- At least But lessthan 0 1 2 3The amount of income tax to be withheld is-4 5 6 7 8 9 10

Which body issued Regulation E to protect consumers from loss of deposited funds?

Melody is a full-time employee in Sioux City, South Dakota, who earns $3,600 per month and is paid semimonthly. She is married with 1 withholding allowance (use the wage-bracket tables). She has a qualified health insurance deduction of $50 per pay period and contributes 3% to her 401(k), both of which are pre-tax Deductions. What is her net pay? (Round your intermediate calculations and final answer to 2 decimal places.) Wage Bracket Method Tables for Income Tax Withholding MARRIED Persons-SEMIMONTHLY Payroll Period (For Wages Paid through December 2019) And the wages are And the number of withholding allowances claimed is- At least But lessthan 0 1 2 3The amount of income tax to be withheld is-4 5 6 7 8 9 10 $ 1,602 $ 1,622 $ 118 $ 97 $ 77 $ 60 $ 42 $ 25 $ 7 $ 0 $ 0 $ 0 $ 0 1,622 1,642 121 100 79 62 44 27 9 0 0 0 0 1,642 1,662 123 102 81 64 46 29 11 0 0 0 0 1,662 1,682 125 104 83 66 48 31 13 0 0 0 0 1,682 1,702 128 107 86 68 50 33 15 0 0 0 0 1,702 1,722 130 109 88 70 52 35 17 0 0 0 0 1,722 1,742 133 112 91 72 54 37 19 2 0 0 0 1,742 1,762 135 114 93 74 56 39 21 4 0 0 0 1,762 1,782 137 116 95 76 58 41 23 6 0 0 0 1,782 1,802 140 119 98 78 60 43 25 8 0 0 0 1,802 1,822 142 121 100 80 62 45 27 10 0 0 0 1,822 1,842 145 124 103 82 64 47 29 12 0 0 0 1,842 1,862 147 126 105 84 66 49 31 14 0 0 0 1,862 1,882 149 128 107 86 68 51 33 16 0 0 0 1,882 1,902 152 131 110 89 70 53 35 18 0 0 0 1,902 1,922 154 133 112 91 72 55 37 20 2 0 0 1,922 1,942 157 136 115 94 74 57 39 22 4 0 0 1,942 1,962 159 138 117 96 76 59 41 24 6 0 0 1,962 1,982 161 140 119 98 78 61 43 26 8 0 0 1,982 2,002 164 143 122 101 80 63 45 28 10 0 0 2,002 2,022 166 145 124 103 82 65 47 30 12 0 0 2,022 2,042 169 148 127 106 85 67 49 32 14 0 0 2,042 2,062 171 150 129 108 87 69 51 34 16 0 0 2,062 2,082 173 152 131 110 89 71 53 36 18 1 0 2,082 2,102 176 155 134 113 92 73 55 38 20 3 0 2,102 2,122 178 157 136 115 94 75 57 40 22 5 0 2,122 2,142 181 160 139 118 97 77 59 42 24 7 0 2,142 2,162 183 162 141 120 99 79 61 44 26 9 0 2,162 2,182 185 164 143 122 101 81 63 46 28 11 0 2,182 2,202 188 167 146 125 104 83 65 48 30 13 0 2,202 2,222 190 169 148 127 106 85 67 50 32 15 0 2,222 2,242 193 172 151 130 109 88 69 52 34 17 0 2,242 2,262 195 174 153 132 111 90 71 54 36 19 1 2,262 2,282 197 176 155 134 113 92 73 56 38 21 3 2,282 2,302 200 179 158 137 116 95 75 58 40 23 5 2,302 2,322 202 181 160 139 118 97 77 60 42 25 7 2,322 2,342 205 184 163 142 121 100 79 62 44 27 9 2,342 2,362 207 186 165 144 123 102 81 64 46 29 11 2,362 2,382 209 188 167 146 125 104 83 66 48 31 13 2,382 2,402 212 191 170 149 128 107 86 68 50 33 15 2,402 2,422 214 193 172 151 130 109 88 70 52 35 17 2,422 2,442 217 196 175 154 133 112 91 72 54 37 19 2,442 2,462 219 198 177 156 135 114 93 74 56 39 21 2,462 2,482 221 200 179 158 137 116 95 76 58 41 23 2,482 2,502 224 203 182 161 140 119 98 78 60 43 25 2,502 2,522 226 205 184 163 142 121 100 80 62 45 27 2,522 2,542 229 208 187 166 145 124 103 82 64 47 29 2,542 2,562 231 210 189 168 147 126 105 84 66 49 31 2,562 2,582 233 212 191 170 149 128 107 86 68 51 33 2,582 2,602 236 215 194 173 152 131 110 89 70 53 35 2,602 2,622 238 217 196 175 154 133 112 91 72 55 37 2,622 2,642 241 220 199 178 157 136 115 94 74 57 39 2,642 2,662 243 222 201 180 159 138 117 96 76 59 41 2,662 2,682 245 224 203 182 161 140 119 98 78 61 43