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16 January, 19:36

The following totals for the month of October were taken from the payroll register of the Tobias Company:

Salaries [all subject to social security and medicare taxes] $14,000

Salaries [included above] subject to unemployment taxes 11,000

Federal income taxes withheld 3,500

State income taxes withheld 1,100

Medicare tax rate 1.45%

Social security tax rate 6.20%

Federal unemployment tax rate. 60%

State unemployment tax rate 5.40%

What is the gross and net pay?

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  1. 16 January, 23:28
    0
    Gross pay = $14,000

    Net pay = $8,329

    Explanation:

    Particular Amount

    Salary $14,000

    Gross pay $14,000

    Less: Federal income tax $3,500

    Less: State income tax $1,100

    Less: Social security tax $868

    $14,000 x 6.20%

    Less: Medicare tax $203

    $14,000 x 1.45%

    Net pay $8,329
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