activity 2.5 employee withholding sheet directions: complete the following employee withholding sheet from…

activity 2.5 employee withholding sheet directions: complete the following employee withholding sheet from the information given. terry peterson, social security no. 999 - 00 - 2838, receives a weekly (4 times/month) paycheck. he is single and claims three allowances. his monthly salary is $1,600. in addition to the required deductions, he also pays insurance premiums of $18 a week and sets aside 5 percent of his gross pay for retirement each week. employee withholding sheet employee name ______________ social security number ______________ pay period: □ weekly □ biweekly □ monthly number of allowances: ______________ □ married □ single gross pay 1. regular wages: ______ hours at $______/hr. = $______ or 2. regular salary: = ______ 3. overtime: ______ hours at $______/hr. = $______ gross pay.............................. $______ required deductions 4. federal income tax (use tax tables).................. $______ 5. state income tax (use tax tables)................... $______ 6. social security tax (use 6.2%×gross pay)............. $______ 7. medicare tax (use 1.45%×gross pay)............... $______ other deductions 8. insurance.............................. $______ 9. union dues............................. $______ 10. credit union........................... $______ 11. savings............................... $______ 12. retirement............................. $______ 13. charity............................... $______ 14. other: ______.............................. $______ total deductions (total lines 4 through 14).................. $______ net pay (subtract total deductions from gross pay).................. $______

activity 2.5 employee withholding sheet directions: complete the following employee withholding sheet from the information given. terry peterson, social security no. 999 - 00 - 2838, receives a weekly (4 times/month) paycheck. he is single and claims three allowances. his monthly salary is $1,600. in addition to the required deductions, he also pays insurance premiums of $18 a week and sets aside 5 percent of his gross pay for retirement each week. employee withholding sheet employee name ______________ social security number ______________ pay period: □ weekly □ biweekly □ monthly number of allowances: ______________ □ married □ single gross pay 1. regular wages: ______ hours at $______/hr. = $______ or 2. regular salary: = ______ 3. overtime: ______ hours at $______/hr. = $______ gross pay.............................. $______ required deductions 4. federal income tax (use tax tables).................. $______ 5. state income tax (use tax tables)................... $______ 6. social security tax (use 6.2%×gross pay)............. $______ 7. medicare tax (use 1.45%×gross pay)............... $______ other deductions 8. insurance.............................. $______ 9. union dues............................. $______ 10. credit union........................... $______ 11. savings............................... $______ 12. retirement............................. $______ 13. charity............................... $______ 14. other: ______.............................. $______ total deductions (total lines 4 through 14).................. $______ net pay (subtract total deductions from gross pay).................. $______

Answer

Explanation:

Step1: Calculate weekly gross - pay

Monthly salary is $1600$, and he is paid weekly (4 times a month). So the weekly gross - pay is $\frac{1600}{4}=400$.

Step2: Calculate Social Security Tax

Social Security Tax rate is 6.2% of gross pay. So Social Security Tax = $0.062\times400 = 24.8$.

Step3: Calculate Medicare Tax

Medicare Tax rate is 1.45% of gross pay. So Medicare Tax = $0.0145\times400=5.8$.

Step4: Calculate retirement deduction

He sets aside 5% of his gross pay for retirement each week. Retirement deduction = $0.05\times400 = 20$.

Step5: Other deductions - insurance

Insurance premium is $18$ a week.

Step6: Total deductions (excluding federal and state income tax)

Total deductions (excluding federal and state income tax)=$18 + 20+24.8 + 5.8=68.6$.

Step7: Fill in the form details

Employee Name: Terry Peterson Social Security Number: 999 - 00 - 2838 Pay Period: weekly Number of Allowances: 3 Marital Status: single Regular Salary: $400$ Gross Pay: $400$ Social Security Tax: $24.8$ Medicare Tax: $5.8$ Insurance: $18$ Retirement: $20$

Answer:

Employee Name: Terry Peterson Social Security Number: 999 - 00 - 2838 Pay Period: $\boxed{\text{weekly}}$ Number of Allowances: 3 Marital Status: $\boxed{\text{single}}$ Regular Salary: $400$ Gross Pay: $400$ Social Security Tax: $24.8$ Medicare Tax: $5.8$ Insurance: $18$ Retirement: $20$ (Note: Federal and state income tax values cannot be calculated without tax - tables and are left blank here. Also, other fields like overtime etc. are not applicable as no such information is given.)