Author Question: Robert, the accountant, has to calculate the net pay for each of Dotson Company's three employees. ... (Read 43 times)

tiara099 · **on:** Jul 5, 2018

Robert, the accountant, has to calculate the net pay for each of Dotson Company's three employees.

Robert has gathered the following information about payroll for the period:

Ken Barbie Skipper
Gross pay 60,000 40,000 38,000
Federal income taxes withheld 8,500 5,500 4,500

Required: Calculate the net paycheck for each of the employees. Assume that FICA (Social Security) taxes are withheld at the rate of 6.2 of gross earnings and that Medicare taxes are withheld at the rate of 1.45 of gross earnings.

What will be an ideal response?

Question 2

A control plan that is designed to detect a fraud by having one employee periodically do the job of another employee is called:
a. segregation of duties
b. forced vacations
c. periodic audits
d. management control

SeanoH09 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

Ken Barbie Skipper
Gross pay 60,000 40,000 38,000
Federal income taxes withheld 8,500 5,500 4,500
FICA withheld (.062 ) 3,720 2,480 2,356
Medicare withheld (.0145 ) 870 580 551
Net pay 46,910 31,440 30,593

Answer to Question 2

B