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-2018 Amount for one Withholding Allowance Federal Income tax using percentage method

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.

Disposable income is defined as:

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

What payroll-specific tool is used to facilitate computation of net pay?

State and Local Income Tax rates ________.

The purpose of the wage base used for the Social Security tax is ________.

Which of the following is used in the determination of the amount of federal income tax to be withheld from an employee per pay period? (You may select more than one answer. )

Max earned $1,019.55 during the most recent semimonthly pay period.He is single with 1 withholding allowance and has no pre-tax deductions.Using the following table,how much should be withheld for federal income tax?

Paolo is a part-time security guard for a local facility.He earned $298.50 during the most recent weekly pay period and has earned $5,296.00 year-to-date.He is married with four withholding allowances.What is his Medicare tax liability for the pay period?

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-2018 Amount for one Withholding Allowance

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-2018 Amount for one Withholding Allowance

Which of the following is the correct sequence for computing net pay?

Ramani earned $1,698.50 during the most recent biweekly pay period.He contributes $100 to his 401(k)plan.He is married and claims 3 withholding allowances.Based on the following table,how much Federal income tax should be withheld from his pay?

Which are steps in the net pay computation process? (You may select more than one answer. )

Computation of net pay involves deducting mandatory and voluntary deductions from gross pay.

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?

Garnishments are court-ordered amounts that an employer must withhold from an employee's pre-tax pay and remit to the appropriate authority.

Which of the following states do not have state income tax deducted from employee pay? (You may select more than one answer. )

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