answer:
To calculate the taxable income for federal income tax withholding, social security tax, and medicare tax, we need to follow these steps:
Step 1: Calculate the total gross pay for the workweek
Regular hours = 40
Overtime hours = 46 - 40 = 6
Regular pay = Regular hours * Hourly rate = 40 * $42.50 = $1700
Overtime pay = Overtime hours * (Hourly rate * 1.5) = 6 * ($42.50 * 1.5) = $382.50
Total gross pay = Regular pay + Overtime pay = $1700 + $382.50 = $2082.50
Step 2: Calculate the total gross pay for the year
To date, the employee has earned $142,200 during the year.
Step 3: Calculate the withholding for the 403(b) plan
The employee requested that 5.5% of gross pay be withheld for the 403(b) plan.
403(b) withholding = Total gross pay * 0.055 = $2082.50 * 0.055 = $114.54
Step 4: Calculate the taxable income for federal income tax withholding
Taxable income for federal income tax withholding = Total gross pay - 403(b) withholding = $2082.50 - $114.54 = $1967.96
Step 5: Calculate the taxable income for social security tax
The Social Security tax only applies to the first $142,800 earned during the year. Since the employee has already earned $142,200, the taxable income for social security tax is $142,200.
Step 6: Calculate the taxable income for medicare tax
The Medicare tax applies to all earnings with no maximum limit. Therefore, the taxable income for medicare tax is $142,200.
Therefore, the taxable income for federal income tax withholding is $1967.96, the taxable income for social security tax is $142,200, and the taxable income for medicare tax is $142,200.
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