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Hello students, here is a question.
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Assume a tax rate of 6 .2 % on $142 ,800.
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Social security is, social security and 1 .45 % of medicaid, number one will reach the maximum of fica.
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So, complete the following payroll registration.
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Assume payroll period should be weekly.
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Use the percentage method to calculate fit for this weekly period of gross pay 2000.
00:28
So, let us start doing the solution for this.
00:33
So, to complete the payroll registration, we need to calculate the deduction of social security, medicare and federal income tax, that is fit, as well as net pay.
00:42
So, in the question, we have an information of gross pay 2000, social security.
00:59
So, social security is 6 .2 % on $142 ,800.
01:07
Medicare tax rate 1 .45 % and payroll period will be weekly.
01:27
So, let us calculate the social security deductions.
01:35
So, calculation of social security deduction.
01:49
So, which is the social security tax is calculated as 6 .2%.
01:54
The gross pay up to maximum of $142 ,800 per year.
01:58
Since no one will reach the maximum of fica, we can simply multiply the gross pay by the tax rate.
02:06
So, social security deduction will be gross pay into social security tax, gross pay into social security tax.
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So, which will be $2000 into 6 .2%.
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So, which gives us $124.
02:32
So, now we will calculate the medicaid deductions, calculation of medicaid deductions...