Exam 10: Payroll Records

Social Security and Medicare ​ The required deduction for Social Security is 6.2% OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of $97,500 and 1.45% HI (Hospital Insurance, commonly known as "Medicare") for all earnings. ​ -Refer to the Social Security and Medicare information. Sonia Evans earns a monthly salary of $2,800. Compute the amount deducted each month for Social Security and Medicare.​

Elizabeth Seabert had gross earnings of $795 last week. She is single and claims an allowance for herself only. The amount of one weekly withholding allowance is $65.38. Using the Table for Single Taxpayers above, figure the amount that will be withheld from her paycheck for federal income tax. (Figure withholding to the nearest cent.)​

Dale Bowman had gross earnings of $820 last week. He is married and claims himself, his wife, and three children as dependents. The weekly withholding allowance for each dependent is $65.38. Using the Table for Married Taxpayers above, figure the amount that will be withheld from his paycheck for federal income tax. (Figure withholding to the nearest cent.)​

A weekly payroll register shows that Vickie Sanders had total wages of $550. She had deductions of $42.08 for FICA tax, $55 for federal income tax, and $22.50 for medical insurance. Compute Sander's net pay.​

Withholding Allowance ​ A withholding allowance for the employee and each dependent is exempt from gross earnings and not subject to federal income tax. The monthly deduction for this allowance is $283.33. -Refer to the Withholding Allowance information. Susan Smith claims herself and two dependents. Her monthly salary is $2,800. Compute Smith's taxable income per month.​

Withholding Allowance ​ A withholding allowance for the employee and each dependent is exempt from gross earnings and not subject to federal income tax. The monthly deduction for this allowance is $283.33. -Refer to the Withholding Allowance information. Mike White claims himself and three dependents. His monthly salary is $2,900. Compute White's taxable income per month.​