Exam 9: Payroll

To date, Jay Ward has cumulative earnings of $118,000. This week he is paid $3,000. The total amount of Social Security tax for this week is (assume a rate of 6.2% on $118,500 for Social Security and 1.45% for Medicare):

Differential pay schedule is based on:

Percentage method tables can show:

The base amount for calculating Social Security taxes never changes from year to year.

Mindy makes boots for Belleville Boot Factory. She is paid on the following differential pay scale: What is Mindy's pay if she produced 192 boots for the week?

Leo Corporation pays its employees on a graduated commission scale: 6% on the first $40,000 in sales, 7% on sales from $40,000 to $80,000, and 9% on sales greater than $80,000. Bernie Kaminsky had sales of $105,000. His commission is:

Differential pay means that there is one fixed rate per unit that is produced.

Sandi works for Elizabeth Arden Cosmetics and earns $500 per week salary plus 4% commission on sales over $2,000. If Sandi sold $2,733 last week, what was her salary?

A merit rating system for SUTA means:

The more allowances claimed on Form W-4:

Jim Smith is a salesman who receives a $1,100 draw per week. He receives a 12% commission on all sales. Sales for Jim were $205,000 for the month. Assuming a four-week month, Jim's final commission after the draw for the month is:

FUTA tax is computed by the wage-bracket table.

Aley Company pays all its employees a graduated commission scale: 3% on the first $30,000 sales, 5% on sales from $30,001 to $110,000, and 7% on sales more than $110,000. Jim Jones, an employee of Aley, had $130,000 in sales. What commission did Jim earn?

Jim Ross is an automobile salesman who receives a salary of $500 per week plus a commission of 3% on all sales. During a four-week period he sold $42,000 worth of cars. What were Jim's average earnings?

Circular E from the Internal Revenue Service contains many tax tables.

Lana Powell has cumulative earnings of $116,000 at the end of September. In the first week in October she earns $2,000. The amount deducted for Social Security and Medicare from her check is (assume Social Security rate of 6.2% on $118,500 and Medicare of 1.45%):

A variable commission scale means that for different levels of net sales there are different commission rates.

In the portion formula, the commission a worker receives would be the base.

The Labor Fair Standards Act:

Overtime is always calculated at time and a half the regular rate.