Author Question: Albert, the accountant, has been asked by his boss to calculate the net pay for each of Pinnock ... (Read 79 times)

scienceeasy · **on:** Jul 5, 2018

Albert, the accountant, has been asked by his boss to calculate the net pay for each of Pinnock Company's three employees.

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

Larry Curly Moe
Gross pay 50,000 20,000 35,000
Federal income taxes withheld 7,500 3,000 4,000

Required: Calculate the net pay for each of the employees. Assume that FICA (Social Security) taxes are withheld at the rate of 6.2 of gross pay and that Medicare taxes are withheld at the rate of 1.45 of gross pay.
What will be an ideal response?

Question 2

The primary reasons for performing regular employee performance reviews include all of the following except:
a. determine whether an employee is satisfying the requirements indicated by a job description
b. assess an employee's strengths and weaknesses
c. assist management in determining salary adjustments, promotions, or terminations
d. develop a strategy for filling necessary positions

pangili4 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

Larry Curly Moe
Gross pay 50,000 20,000 35,000.00
Federal income taxes withheld 7,500 3,000 4,000.00
FICA withheld (.062 ) 3,100 1,240 2,170.00
Medicare withheld (.0145 ) 725 290 507.50
Net pay 38,675 15,470 28,322.50

Answer to Question 2

D