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

Ocean's Auction House's payroll for April includes the following data: What is the net pay?

Why would a business decide to use an external company to prepare their payroll checks and related reports?

Regular earnings are equal to total earnings less deductions.

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 net pay?

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. -

Gross Earnings are the same as:

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

Clare's earnings during the month of February were $6,200. Her earnings for the year prior to February were $5,600. Clare's employer is subject to federal unemployment taxes of 0.8% and state unemployment taxes of 5.4% on the first $7,000. The employer's unemployment payroll tax expense for Clare in the month of February is:

Net pay is equal to gross pay less deductions.

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. -

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. -

Compute the net pay for each employee. The FICA tax rate is: OASDI 6.2% on a limit of $106,800; Medicare is 1.45%; federal income tax is 15%; state income tax is 5%; and medical insurance is $100 per employee.

On January 15, Robert Love earned $4,000 and has the following deductions: FICA-OASDI 6.2%, FICA-Medicare 1.45%; federal income tax of $200; and state income tax $40. What is his net pay?

Ocean's Auction House's payroll for April includes the following data: What is the employee's portion of the tax?

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

Compute net earnings on March 3, when gross (taxable)pay equals $750. FICA-OASDI tax rates are 6.2%, FICA-Medicare rate is 1.45%, federal income tax $71.00, and state income tax $5.00.

FUTA and SUTA are paid for exclusively by the employee.

Brian Temple's cumulative earnings are $73,000, 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?

Tracey Thrasher earned $800 for the week. If her cumulative earnings are $30,000 prior to this pay period, how much FICA-OASDI must her employer withhold from her earnings? FICA tax rates are OASDI 6.2% on a limit of $106,800.

Compute the net pay for each employee listed below. Assume the following rates: FICA-OASDI 6.2% on a limit of $106,800; Medicare is 1.45%; federal income tax is 20%; state income tax is 5%; and union dues are $10.