Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

تمرين 26

Computing payroll amounts considering Social Security tax ceilings
Suppose you work for MRK, the accounting firm, all year and earn a monthly salary of $5,700. There is no overtime pay. Your withheld income taxes consume 15% of gross pay. In addition to payroll taxes, you elect to contribute 5% monthly to your retirement plan. MRK also deducts $150 monthly for your co-pay of the health insurance premium.
Requirement
1. Compute your net pay for November. Use 7.65% FICA tax rate and assume the 2010 FICA wage ceiling of $106,800 applies.