EXERCISE 7-7 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. Round amounts to the nearest penny. Brown Ringness 2$ Total Regular earnings Overtime earnings $ 3,500.00 24 120.00 Total earnings $3,646.00 2$ $ 312.08 24 Federal income tax withheld 2$ %24 State income tax withheld 35.18 Social Security tax withheld Medicare tax withheld 226.05 169.76 52.87 39.70 Charity withheld Total deductions 35.00 97.00 $ 688.42 24 517.53 24 Net pay 2$ $ 2,220.47 24

EXERCISE 7-7 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. Round amounts to the nearest penny. Brown Ringness 2$ Total Regular earnings Overtime earnings $ 3,500.00 24 120.00 Total earnings $3,646.00 2$ $ 312.08 24 Federal income tax withheld 2$ %24 State income tax withheld 35.18 Social Security tax withheld Medicare tax withheld 226.05 169.76 52.87 39.70 Charity withheld Total deductions 35.00 97.00 $ 688.42 24 517.53 24 Net pay 2$ $ 2,220.47 24

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 7E

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