question archive The following summary data for the payroll period ended December 27, 2015, are available for Cayman Coating Co
The following summary data for the payroll period ended December 27, 2015, are available for Cayman Coating Co
Subject:AccountingPrice: Bought3
The following summary data for the payroll period ended December 27, 2015, are available for Cayman Coating Co.:Gross pay$172,000FICA tax withholdings?Income tax withholdings20,640Group hospitalization insurance2,540Employee contributions to pension plan?Total deductions41,650Net pay?Additional information:For employees, FICA tax rates for 2015 were 7.65% on the first $118,500 of each employee’s annual earnings. However, no employees had accumulated earnings for the year in excess of the $118,500 limit.For employers, FICA tax rates for 2015 were also 7.65% on the first $118,500 of each employee’s annual earnings.The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied against the employer for the first $7,000 of each employee’s annual earnings. Only $18,000 of the gross pay amount for the December 27, 2015, pay period was owed to employees who were still under the annual limit.
