Exam 5: Employee Net Pay and Pay Methods

Collin is a full-time exempt employee in Juneau, Alaska, who earns $135,000 annually and has not yet reached the Social Security wage base. He is single with 1 withholding allowance and is paid semimonthly. He contributes 3% per pay period to his 401(k) and has pre-tax health insurance and AFLAC deductions of $150 and $25, respectively. Collin has a child support garnishment of $300 per pay period. What is his net pay? (Use the percentage method. Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Table 5. Percentage Method-2019 Amount for One Withholding Allowance Federal Income tax using percentage method One Withholding Payroll Period 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 3-SEMIMONTHLY 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 $158...... $0 Not over $492...... $0 Over- But not over- of excess over- Over- But not over- of excess ov $ 158 −$ 563 $ 0.00 plus 10% −$ 158 $ 492 -$ 1,300 $ 0.00 plus 10% $ 563 −$ 1,803 $ 40.50 plus 12% −$ 563 $ 1,300 -$ 3,781 $ 80.80 plus 12% $ 1,803 −$ 3,667 $ 189.30 plus 22% −$ 1,803 $ 3,781 -$ 7,508 $ 378.52 plus 22% $ 3,667 −$ 6,885 $ 599.38 plus 24% −$ 3,667 $ 7,508 -$ 13,885 $ 1,198.46 plus 24% $ 6,885 −$ 8,663 $ 1,364.50 plus 32% −$ 6,885 $ 13,885 -$ 17,500 $ 2,728.94 plus 32% $ 8,663 −$ 21,421 $ 1,943.06 plus 35% −$ 8,663 $ 17,500 -$ 26,006 $ 3885.74 plus 35% $ 21,421 $ 6,408.36 plus 37% −$ 21,421 $ 26,006 $ 6,862.84 plus 37%

Why might an employee elect to have additional federal income tax withheld? (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.)

Warren is a married employee with six withholding allowances. During the most recent biweekly pay period, he earned $9,450.00. Using the percentage method, compute Warren's federal income tax. (Do not round intermediate calculations. Round your final answer 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 $142...... $0 Not over $444...... $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%

The purpose of paycards as a pay method is to ________.

From the employer's perspective, which of the following is a challenge of paying employees by direct deposit?

Post-Tax Deductions are amounts ________.

Maile is a full-time exempt employee in Boca Raton, Florida, who earns $1,370.15 per biweekly payday. She is married with seven withholding allowances, so her federal income tax is $0. She contributes 4% of her gross pay to her 401(k) and has her health insurance premium of $50 deducted on a pre-tax basis. She Has $10 deducted per pay period for a Salvation Army contribution and has union dues of $40 per pay period. What is her net pay? (Do not round intermediate Calculations. Round your final answer to 2 decimal places.)

Garnishments may include deductions from employee wages on a post-tax basis for items such as: (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.)

When a payroll check is subject to escheatment, who handles the distribution of the money?

Which of the following statements is/are true about Medicare tax? (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 payroll-specific tool is used to facilitate computation of net pay?

Jeannie is an adjunct faculty at a local college, where she earned $680.00 during the most recent semimonthly pay period. Her prior year-to-date pay is $18,540. She is single and has one withholding allowance. What is her Social Security tax for the pay period?

What is an advantage of direct deposit from the employee's perspective?

Which of the following is true about cash as a method of paying employees?

State and Local Income Tax rates ________.

Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $45,000 and is paid semimonthly. He is married with 3 withholding allowances. His state income tax is 3.23%, and Clark County income tax is $33.75 per pay period. What is the total of FICA, Federal, state, and local deductions Per pay period, assuming no Pre-Tax Deductions? (Use the wage-bracket table to determine Federal taxes. Do not round intermediate calculations. Round your 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

Renee is a salaried exempt employee who earns an annual salary of $64,200, which is paid semimonthly. She is married with four withholding allowances. What is her total FICA tax liability per pay period? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Which of the following federal withholding allowance scenarios will have the highest income tax?

What role does the employer play regarding an employee's federal withholding tax?

Wyatt is a full-time exempt music engineer who earns $150,000 annually and is paid semimonthly. As of November 15, his year-to-date gross pay was $131,250. How much will be withheld for FICA taxes for the November 30 pay date? (Social Security maximum wage is $132,900. Do not round intermediate calculations. Round your final answer to 2 decimal places.)