This company, See Saw Co., pays a weekly payroll. Assume that the social security tax rate is 6.0% on the first $100,000 of annual earnings, and the Medicare tax rate of 1.5%. Determine the gross pay, individual deductions, total deductions, and the net pay for each of the four employees for the current pay period based on the information provided. (Determine this information for the current pay perid, not for the year. The gross pay prior to this pay period is given only so that you can determine the correct social security amount to be withheld).
Employee A- Regular earnings, $1,800 per week. Gross pay period to this pay period, $101,600. The amount of federal income tax to be withheld is $500.
How to find the Regular earnings, Overtime earnings(not applicable), Gross Earnings for the Week Deductions: Social Security tax, Medicare tax, Federal income tax,total deductions, and the net pay.