Question

Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September.

Determine the missing amounts assuming that the Social Security tax is 6.2 percent, the Medicare tax is 1.45 percent, and the state income tax is 20 percent of the federal income tax. Assume that the employees are married and have one withholding allowance. All earnings are subject to Social Security and Medicare taxes. If required, round your answers to the nearest cent and use the rounded answers in subsequent computations. Enter all amounts as positive values.

	BROWN	RINGNESS	TOTAL
Regular earnings	$3,480.00	$	$
Overtime earnings		114.00
Total earnings	$3,636.00	$	$
Federal income tax withheld	$316.00	$	$
State income tax withheld		36.80
Social Security tax withheld	225.43	168.95
Medicare tax withheld	52.72	39.51
Charity withheld	38.00	99.00
Total deductions	$695.35	$528.26	$
Net pay	$	$2,196.74	$

Answer 1

	BROWN (a)	RINGNESS (b)	TOTAL (a + b)
Regular Earnings ($2,725 - $114)	$3,480	$2,611	$6,091
Add: Overtime earnings ($3,636 - $3,480)	$156	$114	$270
Total Gross Earnings ($2,196.74 + $528.26)	$3,636	$2,725	$6,361
Less: Federal Income Tax Withheld ($528.26 - $99 - $39.51 - $168.95 - $36.80)	($316)	($184)	($500)
Less: State Income Tax withheld ($695.35 - $316 - $225.43 - $52.72 - $38)	($63.20)	($36.80)	($100)
Less: Social Security Tax Withheld	($225.43)	($168.95)	($394.38)
Less: Medicare Tax withheld	($52.72)	($39.51)	($92.23)
Less: Charity Withheld	($38)	($99)	($137)
Total Deductions	($695.35)	($528.26)	($1,223.61)
Net Pay ($3,636 - $695.35)	$2,940.65	$2,196.74	$5,137.39