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

Ken Jenkins earns $75,000 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 $400 per month? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole dollar.)

What is the purpose of the Fair Labor Standards Act?

When calculating the employer's payroll tax expense, the clerk forgot about the wage base limits. This will cause:

All states use the same percent for the state tax rate.

Jane works 45 hours at a rate of pay of $18 per hour. She receives double pay over 40 hours. What is her gross pay?

Robert Smith's hourly rate is $35.00, and he worked 31 hours during the week. What is his gross pay for the week? (Round your answer to the nearest whole dollar.)

List the purposes of the Federal Insurance Contributions Act.

Workers' compensation provides insurance for employees who are:

Which of the below allowances would have the most amount of taxes withheld for federal income tax purposes?

Both parts of FICA, OASDI and Medicare have the same maximum earnings limits.

The amount of FICA-OASDI and FICA-Medicare withheld from the employee's check is determined by the employee's:

The payroll taxes the employer is responsible for are:

FICA-Medicare provides for medical benefits after age 65.

A calendar year is:

The employer's payroll taxes reduce the employee's paycheck.

The payroll register:

The premium rate for workers' compensation insurance is based on the age of the employees.

Dave Brown's cumulative earnings are $104,000, and his gross pay for the week is $5,300. If the FICA rates are: OASDI 6.2% on a limit of $128,400 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week? (Round your answers to the nearest whole dollar.)

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

Another name for the Fair Labor Standards Act is: