Explain the procedures to be followed when computing the social security tax on an employee earnings. Do you think that there should be a limitation on the amount of earnings that are subjected to the OASDI portion of the SSN? Why or Why not?? Why is there a limit anyway? Explain!
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Explain the procedures to be followed when computing the social security tax on an employee earnings....
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is about Social Security Old-Age, Survivors and Disability (OASDI)
and Hopstal Insurance(HI).
Explain the procedures to be followed when computing the social security tax on an employee earnings. Do you think that there should be a limitation on the amount of earnings that are subjected to the OASDI portion of the SSN? Should we place a limit on the Hl portion? See the below article on Warren Buffet and briefly explain what Mr. Buffet perspective is on the limitation...
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...
An employee earned $46,800 during the year working for an employer when the maximum limit for Social Security was $128,400. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is:
The FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%. An employee's share of both FICA taxes was $3,901.50. Given that this employee did not exceed the FICA earnings limitation, compute gross pay
An employee earned $37.000 during the year working for an employer when the maximum limit for Social Security was $118,500. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is. Multiple Choice O $2.204.00 0 $2,830.50 o $1,757.50. To O $8,950.50
a)
Tax
September Earnings Subject to Tax
Tax Rate
Tax Amount
FICA—Social Security
$1,400.00
6.20%
$86.80
FICA—Medicare
1,400.00
1.45%
20.30
FUTA
900.00
3.10%
27.90
SUTA
900.00
2.90%
26.10
b)
Tax
September Earnings Subject to Tax
Tax Rate
Tax Amount
FICA—Social Security
$3,700.00
6.20%
$229.40
FICA—Medicare
3,700.00
1.45%
53.65
FUTA
3.10%
SUTA
2.90%
c)
Tax
September Earnings Subject to Tax
Tax Rate
Tax Amount
FICA—Social Security
6.20%
FICA—Medicare
9,600
1.45%
139.20
FUTA
3.10%
SUTA
2.90%
CH Required information The following information...
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...
Gross Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax withheld Employee Earnings Arnett 42,000 $ 5,880 $ 630 2,520 918 Cruz 2,754 — 230 15,300 22,950 Edwards 2,873 1,327 344 7 Harvin 4,800 600 7 Nicks 66,700 15,008 → 288 4,002 222 Shiancoe 3,700 574 1,001 56 1,139 Ward 75,900 16,324 4,554 13,881 $ 3,472 ✓ 2. Calculate the following employer payroll taxes for the year: (a) social security; (b) Medicare; (c) state unemployment compensation at 5.4% on...
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...
An employee earned $46,800 during the year working for an employer when the maximum limit for Social Security was $128,400. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is: