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Lake Community College gives its faculty the option of receiving the balance of their contract at the end of the semester on May 17, 20--. The faculty can receive one lump-sum payment instead of receiving
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Lake Community College gives its faculty the option of receiving the balance of their contract at the end of the semester on May 17, 20--. The faculty can receive one lump-sum payment instead of receiving the remaining seven biweekly pays over the summer. Use the data given below to complete the Payroll Register on May 17. No employee has reached the OASDI ceiling, and all employees are taking the lump-sum payment. The state withholding rate is 2.0% of total earnings; the city withholding rate is 1.0% of total earnings. The biweekly wage bracket is used for federal income taxes.

User PederOverland
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Please find table attached

Answer and Explanation:

Given that state withholding rate or state income taxes(SIT) and city withholding rate or city income taxes(CIT) are 2.0% and 1.0% respectively. Social security taxes(OASDI) and Medicare taxes are 6.25% and 1.45% respectively and OASDI ceiling is not reached. Also Federal income taxes(FIT) is 11%. For each lump sum say $16000, we multiply the rate say 6.2% OASDI to get OASDI deduction for that employee. Hence we calculate employees' payroll as follows:

Lake Community College gives its faculty the option of receiving the balance of their-example-1
User Rakel
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