A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee...

Question

Question

A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee...

A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee in all but one of the following situations. In which situation would this not be required?

a.A cleaning lady who is paid $8,000 a year

b.A cook who is paid $35,000 a year

c.The taxpayer would not have to pay Social Security and Medicare taxes in any of the above situations

d.A nanny who earns $22,000 a year

e.A baby-sitter who earns $1,300 a year

Complete the simplified formula for calculating AMT.

Regular taxable income (before standard deductions)
+ –
=
–
=
x
=
–
=

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

In the given case the same would not be payable to the baby sitter who earns $1300 a year as it does not exceed the limit of $2000.
As per publication 926 of the IRS social security and medicare taxes are payable for domestic help if the annual payment is expected to exceed $2000.

Add a comment

Answer 2

Similar Homework Help Questions

Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay

Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Cumulative pay for the current year for each of its employees follows. a. Compute the amounts in this table for each employee. b. For the company, compute each total for FICA Social Security taxes, FICA Medicare taxes,...
BMX Company has one employee, FICA Social Security taxes are 6.2% of the first S 117,000...

BMX Company has one employee, FICA Social Security taxes are 6.2% of the first S 117,000 paid to its employee,and FICA Medicaretaxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first S7.000 paid to its employee. Pay through August a. b. C. S 6,400 18.200 110,700 Gross Pay for Septemberl S 800 2.100 8,000 Compute BMXCs amounts for each of these four taxes as applied to the employee's gross...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128.400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128.400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Assuming situation (a), prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities. Complete this question by entering your answers in the tabs below.

Calculating Social Security and Medicare Taxes Assume a Social Security tax rate of 6.2% is applied...

Calculating Social Security and Medicare Taxes Assume a Social Security tax rate of 6.2% is applied to maximum earnings of $118,500 and a Medicare tax rate of 1.45% is applied to all earnings. Calculate the Social Security and Medicare taxes for the following situations If an amount box does not require an entry leave it blank. If required, round your answers to the nearest cent. Cumul Pay Before Current Weekly Payroll Current Gross Pay Year to Date Earnings - Soc...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, Its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Exercise 9-5 Computing payroll taxes LO P2, P3 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a). (b),...
Check my work BMX Company has one employee. FICA Social Security taxes are 6.2% of the...

Check my work BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. Gross Pay Gross Pay for ugh AugustSeptember $ 6,400 18,200 112,200 800 2,100 8,000 b. Exercise 9-5 Computing payroll taxes LO P2, P3 Compute BMX's amounts for each of...

Exercise 9-5 Computing payroll taxes LO P2, P3 BMX Company has one employee. FICA Social Security...

Exercise 9-5 Computing payroll taxes LO P2, P3 BMX Company has one employee. FICA Social Security taxes are 6.20% of the first $117,000 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.60% and SUTA taxes are 2.90% of the first $7,000 paid to its employee. cao Gross Pay through August $ 5,900 17,700 104,000 Gross Pay for September $ 1,700 3,500 20,500 Compute BMX's amounts for each of these...
BMX Company has one employee. FICA Social Security taxes are 6.2 % of the first $128.400 paid to its employee

BMX Company has one employee. FICA Social Security taxes are 6.2 % of the first $128.400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7.000 paid to its employee Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a). (b), and (c). (Round your answers to...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid...

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,700 $ 400 b. 2,150 2,250 c. 122,400 8,300 Compute BMX’s amounts for each of these four taxes as applied to...

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid...

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. a. Gross Pay through August $ 5,200 18,900 112,900 Gross Pay for September $ 2,400 2,800 8,700 Compute BMX's amounts for each of these four taxes as applied to the employee's gross...

A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee...

Homework Answers

Add Answer to:
A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee...

Post as a guest

Earn Coins

Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay

BMX Company has one employee, FICA Social Security taxes are 6.2% of the first S 117,000...

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128.400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay

Calculating Social Security and Medicare Taxes Assume a Social Security tax rate of 6.2% is applied...

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay

Check my work BMX Company has one employee. FICA Social Security taxes are 6.2% of the...

Exercise 9-5 Computing payroll taxes LO P2, P3 BMX Company has one employee. FICA Social Security...

BMX Company has one employee. FICA Social Security taxes are 6.2 % of the first $128.400 paid to its employee

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid...

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid...

A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee...

Homework Answers

Add Answer to: A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee...

Post as a guest

Earn Coins

Add Answer to:
A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee...