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Portia Grant Is an Employee Who Is Paid Monthly

question 159

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Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $8,260. The FICA tax for social security is 6.2% of the first $118,500 of employee earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of .6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,325.17. Her net pay for the month is:


Definitions:

Frustrated Contract

A contract under which performance by a party is rendered impossible due to an unexpected or unforeseen change in circumstances affecting the agreement.

Specific Performance

A legal remedy in contracts law where a court orders a party to perform their obligations under a contract, rather than paying damages for not fulfilling the contract.

Injunction

A legal order from a court that compels a party to do or to refrain from doing specific acts, often used to prevent harm or to preserve status quo pending litigation.

Quantum Meruit

Quantum Meruit is a legal principle that allows a party to recover the reasonable value of services provided, even if there was no formal contract, under circumstances where payment is expected.

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