Calculate the net pay for both

Assignment Help Financial Accounting

Reference no: EM13751792

Book mart has two employees in 2013. Jessica earns $4,500 per month and Moses, the manager, earns 11,000 per month. Neither is paid extra if they work overtime. Assume the social security tax rate is 6 percent on the first $110,000 of earnings and the Medicare tax rate is 1.5 percent on all earnings. The federal income tax withholding is 15 percent of gross earnings for Jessica and 20 percent for Moses. Both Jessica and Moses have been employed all year.

Required

1. Calculate the net pay for both Jessica and Moses for March

2. Calculate the net pay for both Jessica and Moses for December.

3. Is the net pay the same in March as December for both employees? Why or Why not?

4. What amounts will Book Mart report on the 2013 W-2’s for each employee?

Reference no: EM13751792

Questions Cloud

Calculate the ending inventory and inventory position : We have a Q inventory system with an order quantity of 200 units, reorder point is 50 units, and order lead time is 3 days. At the end of March 7, the inventory level and the inventory position are both 78 units.

Performance evaluations are based on meeting budgets : Why is it important to investigate both price (rate) and volume (efficiency) variances when rewarding employees for satisfactory work when performance evaluations are based on meeting budgets? What is some qualitative consideration that might be help..

Income statement-balance sheet and statement of cash flow : Chapman Company issued $400,000 of 20 year, 6 percent bonds on January 1, 2013. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Chapman immediately invested the proceeds from the bond issue in land.Prepar..

Koen corporations common fixed expenses : Koen Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $44,000 for Division A. Division B had a contribution margin ratio of 30% and its sales were $217,000. Net operating income for t..

Calculate the net pay for both : Book mart has two employees in 2013. Jessica earns $4,500 per month and Moses, the manager, earns 11,000 per month. Neither is paid extra if they work overtime. Assume the social security tax rate is 6 percent on the first $110,000 of earnings and th..

Calculate total overhead cost allocated for the job : Fitzgerald Inc. uses the ABC method to allocate overhead to production. The following is a list of cost pools and the allocation base for each pool. Calculate total overhead cost allocated for the job.

Calculate the fair value of investments : Imagine that you are a consultant working on a special project to help a company determine techniques that it can use in order to calculate the fair value of investments. Prepare a report to management in which you compare and contrast at least three..

Decrease in the next month''s net operating income : Topeka Company's income statement for the current month shows that the company sold 400,000 units of its product and earned a net operating income of $600,000. Management is very pleased with the result and believes the company's financial position i..

Normal balance of each account is debit or credit : Joel blocker has just rented space in a strip mall. in this space, he will open a photography studio, to be called Picture this! a friend has advised joel to set up a double-entry set of accounting records in which to record all of his business trans..

User Account

All Pages