Question

Joe earns a gross pay of $1,000 for the week just ended. Use the following information...

Joe earns a gross pay of $1,000 for the week just ended. Use the following information to determine Joe's take home pay and the total payroll taxes incurred by the company. Assume Joe is paid in cash on payday.

Federal Income tax              3% of gross pay

State Income tax                  2% of gross pay

Social Security tax               6.2% of gross pay

Medicare tax                         1.45% of gross pay

State Unemployment Tax    5.4% of gross pay

Federal Unemployment Tax .8% of gross pay

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Answer #1
Ans
Take home pay
Gross pay $1,000
Less:
Federal income tax 3%*1000 $30
State income tax 2%*1000 $20
Social security taxes 6.2%*1000 62
Medicare taxes 1000*1.45% 14.5 $126.5
Take home pay $873.50
Payroll taxes
Social security taxes 6.2%*1000 62
Medicare taxes 1000*1.45% 14.5
State Unemployment tax 1000*5.4% 54
Federal Unemployment tax 1000*.8% 8
Total payroll taxes 138.5
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