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

Given the following payroll items you are to identify whether they are the expense of the employer and/or the employee by placing an X in the appropriate column. -

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)?

FICA-Medicare provides for medical benefits after age 65.

An employee earns $32 per hour. She worked 55 hours the third week of January. Calculate the gross pay. The business is involved in interstate commerce. Federal Income Tax rate = 20% State Income Tax rate = 5% FICA rate OASDI = 6.2% and Medicare = 1.45% FUTA rate = .8% SUTA rate = 5.6% $ ________

The payroll register includes sections for recording:

What is the purpose of the Fair Labor Standards Act?

Daryn's cumulative earnings before this pay period were $5,450, and gross for the week is $700. Assuming the wage base limit is $7,000, how much of this week's pay is subject to taxes for SUTA and FUTA?

Another name for the Fair Labor Standards Act is:

Brian Temple's cumulative earnings are $107,000, and his gross pay for the week is $5,300. If the FICA rates are: OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week?

An employee earns $32 per hour. She worked 50 hours the third week of January (assume time and a half for overtime) Calculate the net pay. The business is involved in interstate commerce. Federal Income Tax rate = 20% State Income Tax rate = 5% FICA rate OASDI = 6.2% and Medicare = 1.45% FUTA rate = .8% SUTA rate = 5.6% $ ________

Blue's Tax Service has two types of employees, management and clerical support. The company estimates that it will pay the clerical support $300,000 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.

Insurance paid in advance by employers to protect their employees against loss due to injury or death incurred during employment is:

Ocean's Auction House's payroll for April includes the following data: The employer's payroll tax for the period would be:

The cost of workers' compensation insurance must be estimated and paid in advance by the employer.

Each state is responsible for administering an unemployment program.

Compute employee FICA taxes for the year on earnings of $108,000 at 6.2% on a limit of $106,800 for OASDI and 1.45% for Medicare.

The two parts of FICA are OASDI and Medicare.

The premium rate for workers' compensation is based on the type of work performed.

An employer can reduce the federal unemployment tax rate by paying the state unemployment tax on time.

All employees must contribute to Federal and State income tax.