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BigRedGunn
Jul 3, 2008, 11:09 AM
Employee earnings records for Medenciy Company reveal the following gross earnings for four employees through the pay period of December 15. C.Ogle $84,420 D.Delgado $87,840 L.Jeter $88,580 T.Spivey $90,000
For the pay period ending December 31, each employee’s gross earnings is $3,840.The FICA tax rate is 8% on gross earnings of $90,000.
Instructions
Compute the FICA withholdings that should be made for each employee for the December 31 pay period.

JudyKayTee
Jul 3, 2008, 11:38 AM
Number of dependents? Filing status - married/single - ?

JudyKayTee
Jul 3, 2008, 05:13 PM
Employee earnings records for Medenciy Company reveal the following gross earnings for four employees through the pay period of December 15. C.Ogle $84,420 D.Delgado $87,840 L.Jeter $88,580 T.Spivey $90,000
For the pay period ending December 31, each employee’s gross earnings is $3,840.The FICA tax rate is 8% on gross earnings of $90,000.
Instructions
Compute the FICA withholdings that should be made for each employee for the December 31 pay period.


I find it odd that the same question, same employee names, is posted twice - by 2 different people -

Could this be homework?

morgaine300
Jul 4, 2008, 02:56 PM
Yes, it's homework. There's a lot of homework on here, and since I've been working w/students for 13 years, it sort of sticks out like a sore thumb to me. (Not to mention the 8% was a big clue.) And you don't need any of that other info to do it. It's only asking for the FICA.

BigRedGunn, please see our guidelines about posting homework questions:
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html

One bit of information that is missing, though, is the split between social security and medicare. Since they're using rounded off fake numbers for rates, there's no way to know how they are wanting you to split it. (Common is 6.5% and 1.5% but no way for me to know.)

The original numbers are what the employers had been paid up through the prior pay period. Since only 90,000 of income is taxable for social security, what you need to be figuring out is how much of the current pay is still taxable for each person. i.e. if someone's prior pay is already at 89,000, then only another $1000 is subject to the tax. Etc.

Give this a try.