Joseph Farmer earned $68,000 in 2017 for a company in Kentucky. He is single with 1 withholding allowance and is paid annually. Compute the following employee share of the taxes using the percentage method in Appendix C.
What will be an ideal response?
Federal income tax withholding: $11,151.25
$68,000 - $4,050 = $63,950 taxable
From the bracket table:
$5,226.25 + (63,950-40,250) * 25% = $5,226.25 + (23,700 *.25)
= $5,226.25 + 5,925 = $11,151.25
Social Security tax: $4,216.00
Medicare tax: $986.00
You might also like to view...
In a proposal, the statement of qualifications
A) presents the concept, product, or service you're proposing. B) delineates the costs involved in your proposed solution. C) describes your company's experience, personnel, and facilities. D) asks a decision-maker to authorize your proposed solution. E) orients readers to the information that the proposal will include.
A sole proprietorship is a form of business ownership in which:
A. the company is considered a legal entity that is separate from its owners. B. a single owner actively manages the company. C. two or more people act as co-owners of the company. D. the owners of the business are offered limited liability and flexible tax treatment.
Which of the following is true? A free trade area is a group of two or more countries:
a. in which import duties and other trade barriers are reduced or eliminated. b. that have a common external tariff. c. that have common economic policies. d. All of the above
Faith and Gordon are accountants who work together. Faith and Gordon can limit their potential liability for each other's misconduct by organizing their business as
A. a foreign corporation. B. a non-professional corporation. C. an unincorporated corporation. D. a professional corporation.