Exam 7: Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Karen's cumulative earnings before this pay period were $5,340,and gross pay for the week is $600.Assuming the wage base limit is $7,000,how much of this week's pay is subject to taxes for SUTA and FUTA?

An employee has gross earnings of $2,000 with withholdings of 6.2% FICA-OASDI,1.45 % FICA-Medicare,$100 for federal income tax and $30 for state income tax.How much is the gross pay?

To compute federal income tax to be withheld:

The payroll register:

Sue's Jewelry Shoppe's July payroll includes the following data: The employer's payroll tax for the period would be:

To have less money withheld from your paycheck,an employee can claim more allowances than they actually have.

Employers pay the following payroll taxes,except:

The individual employee earnings record provides a summary of the following for a single employee,except:

Both employees and employers pay which of the following taxes?

The CFC College Credit Card Services has a significant increase in business each spring due to a large increase in new applicants from graduating college students.Subsequently,each spring 40 temporary workers are hired for a 12-week period,working 40 hours per week at $10 per hour and then they are laid off.College's permanent employment total is 350 workers.Because of these yearly layoffs,College's state unemployment merit tax rate is 9%.If the number of layoffs could be reduced,the merit tax rate could be reduced to 4.1%. As the payroll specialist for College,you have been asked to evaluate the following and determine the pros/cons of each decision: 1.Should College stop hiring temporary employees and ask its full-time workers to work overtime to handle the extra load? 2.Should College get its temporary employees from a temporary employment agency and therefore not be subject to the extra taxes?

Bob's Auction House's payroll for April includes the following data: What is the employer's portion of the taxes?

List the purposes of Federal Insurance Contributions Act.

A calendar quarter consists of:

Companies can choose different pay periods for hourly workers versus salary workers.

Gene's Tax Service has two types of employees,management and clerical support.The company estimates that it will pay the clerical support $500,000 next year and the managers $255,000.For every $100,the company pays $0.14 into the workers' compensation insurance.Calculate the amount of worker's compensation insurance.

When calculating the employer's payroll tax expense,the clerk forgot about the wage base limits.This will cause:

An employee has gross earnings of $1,200 with withholdings of 6.2% FICA-OASDI,1.45% FICA-Medicare,$50 for federal income tax and $10 for state income tax.How much is the net pay?

Bob's Auction House's payroll for June includes the following data: What is the gross pay?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -

Todd earns an hourly rate of $20 and had taxes withheld totaling $200.What would his net earnings be if he worked 44 hours (assuming double time over 40 hours)?