Question

The payroll records of Speedy Software show the following information about Marsha Gottschalk, an employee, for the weekly pay period ending September 30, 2017. Gottschalk is single and claims one allowance. Compute her Social Security tax (6.2%), Medicare tax (1.45%), federal income tax withholding, state income tax (1.0%), and net pay for the current pay period. (Use the withholding table in Exhibit 11A.6) (Round your final answers to 2 decimal places.)

Total (gross) earnings for current pay period	$	730
Cumulative earnings of previous pay periods	$	9,490

Answer 1

Gross pay		$        730.00
Social security tax deduction	$         45.26
Medicare tax deduction	$         10.59
Federal income tax deduction	$         93.00
State income tax deduction	$           7.30
Total deductions		$        156.15
Net pay		$        573.86

Gross pay		730
Social security tax deduction	=730*6.2%
Medicare tax deduction	=730*1.45%
Federal income tax deduction	93
State income tax deduction	=730*1%
Total deductions		=SUM(B2:B5)
Net pay		=C1-C6