Exam 7: Payroll and Income Tax

Alvin Shore sells jewelry at Ross Jewelers. Ross pays Alvin $8.50 per hour plus a 6% commission on all sales. Assume Alvin works 36 hours and had sales of $4,900. What is Alvin's gross pay?

Molly Flynn, an accountant at Coor Company, earned $107,400 from January to June. In July, Molly earned $4,600. Assume a tax rate of 6.2% for Social Security on the first $110,100 and a Medicare rate of 1.45%. How much is the tax for Social Security and Medicare?

The W-4 is used strictly to calculate Social Security and Medicare taxes.

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

A taxpayer in the 25% bracket saves 25 cents in federal income tax for each dollar spent on a deductible expense.

Jeff Jones earns $1,200 per week. He is married and claims four withholding allowances. The Social Security rate is 6.2% on $110,100, and Medicare is 1.45%. To date his cumulative wages are $6,000. Each paycheck, his employer also deducts $42.50 for health insurance. What is his net pay? (Calculate FIT by percentage method.)

Calculate the gross pay of Alice Flynn, an apple picker, assuming she picked 6,250 apples:

If you are paid twice a month, you are being paid:

There is a maximum amount of Medicare tax an employee can contribute in a calendar year.

Calculate the gross pay of Alice Flynn, a corn picker, assuming she picked 4,150 ears of corn:

Jill Hartman earns $750 per week plus 3% of sales in excess of $6,500. If Jill sells $25,000 in the first week, her earnings are:

FICA tax base:

Lee Wong is a sales clerk at Sears. She is paid $8.00 per hour plus a commission of 4% on all sales. Assuming Lee works 39 hours and has sales of $4,000, her gross pay is:

Differential pay schedule is based on:

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

A self-employed person has at least three employees.

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

The percentage method can be used to determine the amount of FIT.

Andrew Buckner earns $1,680 per week. He is married and claims three exemptions. What is Andrew's federal income tax? Use the percentage method.

Paula Ryan pays her two employees $410 and $650 per week. Assume a state unemployment rate of 5.9% and a federal rate of .8%. What state and federal unemployment tax will Paula pay at the end of Quarter 1 and Quarter 2?