24. Assume that social security taxes are payable at a 6% rate with a maximum of $100,000 on earnings and Medicare taxes are payable at a 1.5% rate with no maximum earnings, If an employee earns $5,000 for the current week and the employee's year-to-date earnings before this week were $98,000, and the employee requests that $1,000 be withheld for Federal Income Taxes and $300 transferred to his 401k account, What is the employee's net check related to the current week? a. $4,505 b. $3,505 c. $3,805 d. $3,325

24. Assume that social security taxes are payable at a 6% rate with a maximum of $100,000 on earnings and Medicare taxes are payable at a 1.5% rate with no maximum earnings, If an employee earns $5,000 for the current week and the employee's year-to-date earnings before this week were $98,000, and the employee requests that $1,000 be withheld for Federal Income Taxes and $300 transferred to his 401k account, What is the employee's net check related to the current week? a. $4,505 b. $3,505 c. $3,805 d. $3,325

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 5E: For tax purposes, assume that the maximum taxable earnings are 118,500 for Social Security and 7,000...

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