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Compute the FICA withholdings and Payroll Accounting

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Employee earnings records for Brantley Company reveal the following gross earnings for four employees through the pay period of December 15.
C. Mays $83,500
D. Delgado $86,100
L. Jeter $85,600
T. Rolen $87,000

For the pay period ending December 31, each employee's gross earnings is $3,000. The FICA tax rate is 8% on gross earnings of $87,900.

Compute the FICA withholdings that should be made for each employee for the December 31 pay period. (Show computations.)

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C. Mays

Earnings up to Dec 15 $83,500
For period ending Dec 31 $ 3,000
Total Earnings $86,500

FICA withholding @8% $6,920
of earnings up to ...

Solution Summary

This solution contains explanations on how to compute the FICA with holdings that should be made for employees