Question:
1. What was Jennifer’s gross pay for the year?
2. How much did she pay in state income tax?
3. The amount in Box 4 is incorrect. What dollar amount should have been entered in Box 4?
4. The amount in Box 6 is incorrect. What dollar amount should have been entered in Box 6?
5. How much was Jennifer’s FICA tax?
Answer:
1. $ 34854
2. $ 1762.9
3. $ 2160.95
4. $ 505.38
5. $ 2666.33
Explanation:
1. Here we have from W-2 form,
Jennifer's gross pay was $ 34854
2. She paid $ 1762.9
3. The social security tax was 6.2 % of her wages that is
$ 34854 × 6.2/100 = $ 2160.948,
Therefore, the correct amount for item 4 is $ 2160.95
4. The amount in box 6 is the medical tax which is 1.45 % of her wages, which is $ 34854 × 1.45/100 = $ 505.383 ≈ $ 505.38
5. Jennifer's FICA tax for 2012 is the sum of the Social Security and Medicare taxes, that is;
6.2 % + 1.45 % = 7.65 %
Therefore, she paid $ 34854 × 7.65/100 or $ 2666.331 ≈ $ 2666.33