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

Kathy Addington earns $72,000 per year.What is her net pay for the month ended January 31,if FICA tax rates are: 6.2% for OASDI and 1.45% for Medicare; federal income tax is 20%; and union dues are $85 per month?

A pay period is defined as:

The use of a payroll register to record a company's payroll is optional.

Kate's earnings during the month of May were $1,200.Her earnings for the year prior to May were $12,300.Jake's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.8% on the first $7,000.The employer's unemployment payroll tax expense for May is:

From the following information,complete the chart for gross earnings for the week.Assume an overtime rate of time and a half over 40 hours. Hourly kate No. of Hours Worked Gross Earning: Kuit Nelson \ 14 41 - Sabrina Schmitz \ 16 39 - Kirk Seifker \ 18 43 -

The 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?

An employee has gross earnings of $1,000 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 gross pay?