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Robert Donaruma's business, Donaruma Investments Incorporated, has 5 employees who are paid one week after the week they work. As of September 8, each employee's gross earnings were as follows.

Almeida $140,000
Curotto 105,800
Forte 28,000
LaMarca 6,800
Pidgeon 2,000

For this year, the OASDI FICA tax rate is 6.2% of the first $106,800 of each employee's gross pay. The Medicare FICA tax rate is 1.45% of each employee's gross pay. Each employee has $3 withheld weekly for union dues.

Calculate the net pay for Donaruma Investments Incorporated's employee Curotto for the week ended September 15. Curotto currently earns a salary of $1,500 per week. In addition to FICA taxes and union dues, the following were withheld from Curotto's weekly earnings: $270 for federal income taxes and $75 for state income taxes.

A) $1,931.75
B) $1,130.25
C) $1,500.00
D) $1,068.25
E) $1,037.25

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9986954

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