Question

Need help on part C and D

Thanks

George Clausen (age 48) is employed by Kline Company and is paid an annual salary of $42,640. He has just dedded to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: a. What is the maximum that he can contribute into this retirement fund? 12,500 b. What would be the company's contribution? 1,279.20 J Notes For Items c. & d. below, round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places. c. What would be his weekly take-home if he contributes the maximum allowed retirement contribution (married, 2 allowances, wage-bracket method, and a 2.3% state income tax on total wages)? Click here to access the Wage-Bracket Method Tables d. What would be his weekly take-home pay without the retirement contribution deduction?

Answer 1

C. Weekly Pay ($42,640 / 52)........... ..........$ Less: Weekly retirement contribution ($12,500 / 52)............. Weekly wages................ ............ $ Less: FICA Tax (($820 X 6.20%) + ($820 X 1.45%))................. Federal Income tax *... State Income Tax ($822 X 2.3%)............ Weekly Take Home Pay $ * Married, 2 allowances 820.00 240.38 579.62 62.73 26.00 18.86 472.03 D Weekly Pay ($42,640 / 52)...... $ Less: FICA Tax (($820 X 6.20%) + ($820 X 1.45%))............... Federal Income tax * ............ State Income Tax ($822 X 2.3%)............... Weekly Take Home Pay $ * Married, 2 allowances 820.00 62.73 58.00 18.86 680.41