An Employee Earns $5,500 Per Month Working for an Employer

question 205

Multiple Choice

An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount of net pay for the employee for the month of January?

• A)$4,827.00
• B)$4,672.25
• C)$4,628.25
• D)$4,386.25
• E)$4,430.25

Comprehend the role of JIT (Just-In-Time) and lean operations in improving process efficiency and reducing waste.

Recognize how JIT approaches impact quality management and the cultural shifts required for successful implementation.

Identify the wastes in production systems and the strategies to eliminate them.

Understand the importance of supplier relationships and logistics in JIT systems.

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Definitions:

Present Value

The present worth of a future sum of money or series of cash flows, when discounted at a specific rate of interest.

Coupon Payment

The interest payment made to the bondholders by the issuer of the bond.

Term to Maturity

Term to Maturity is the remaining time until a debt instrument, such as a bond, reaches its due date and the principal must be repaid.

Debentures

Long-term securities issued by companies to borrow money, often with a fixed rate of interest.