The following summary data for the payroll period ended December 27, 2015, are available for Cayman Coating Co.:
| |
|
|
| Gross pay |
$ |
172,000 |
| FICA tax withholdings |
|
? |
| Income tax withholdings |
|
20,640 |
| Group hospitalization insurance |
|
2,540 |
| Employee contributions to pension plan |
|
? |
| Total deductions |
|
41,650 |
| Net pay |
|
? |
Additional information:
- For employees, FICA tax rates for 2015 were 7.65% on the first $118,500 of each employee's annual earnings. However, no employees had accumulated earnings for the year in excess of the $118,500 limit.
- For employers, FICA tax rates for 2015 were also 7.65% on the first $118,500 of each employee's annual earnings.
- The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied against the employer for the first $7,000 of each employee's annual earnings. Only $18,000 of the gross pay amount for the December 27, 2015, pay period was owed to employees who were still under the annual limit.