Question 1

Find the Social Security and Medicare taxes on the gross earnings. Assume a 6.2% FICA rate and a 1.45% Medicare rate.
Round to the nearest cent.
-$411.30

Accepted Answer

A) $255.00, $59.60 
B) $2.55, $0.60 
C) $26.50, $6.96 
D) $25.50, $5.96 
A) $255.00, $59.60 
B) $2.55, $0.60 
C) $26.50, $6.96 
D) $25.50, $5.96 D

Question 2

Find the Social Security and Medicare taxes on the gross earnings. Assume a 6.2% FICA rate and a 1.45% Medicare rate.
Round to the nearest cent.
-$530.00

Accepted Answer

A) $33.86, $8.69 
B) $32.86, $7.69 
C) $3.29, $0.77 
D) $328.60, $76.90 
A) $33.86, $8.69 
B) $32.86, $7.69 
C) $3.29, $0.77 
D) $328.60, $76.90 B

Question 3

Find the equivalent earnings.
-Chuck earns $387 a week, but is paid semimonthly. How much is he paid at the end of a pay period?

Accepted Answer

A) $838.50 
B) $774.00 
C) $20,124.00 
D) $1,677.00 
A) $838.50 
B) $774.00 
C) $20,124.00 
D) $1,677.00 A

Question 4

Find the hours, rate, or earnings as specified.
-  Find the number of regular hours, overtime hours (over 40), and the overtime rate (time and a half).

Accepted Answer

A) 28, 0, $16.36 
B) 15, 13, $16.36 
C) 28, 0, $12.27 
D) 20, 8, $12.27 
A) 28, 0, $16.36 
B) 15, 13, $16.36 
C) 28, 0, $12.27 
D) 20, 8, $12.27

Question 5

Find the Social Security tax (6.2%), Medicare tax (1.45%), and state disability insurance deduction (1%) for the employee.
Assume the employee is under the FICA and SDI maximums at the end of the current pay period and assume that
time-and-a-half is paid for any overtime in a 40-hour week. Round to the nearest cent if needed.
-

Accepted Answer

A) $23.27, $5.44, $3.75 
B) $19.59, $4.58, $3.16 
C) $22.04, $5.15, $3.56 
D) $33.06, $7.73, $5.33 
A) $23.27, $5.44, $3.75 
B) $19.59, $4.58, $3.16 
C) $22.04, $5.15, $3.56 
D) $33.06, $7.73, $5.33

Question 6

Find the Social Security and Medicare taxes on the gross earnings. Assume a 6.2% FICA rate and a 1.45% Medicare rate.
Round to the nearest cent.
-$1,494.29

Accepted Answer

A) $93.65, $22.67 
B) $926.50, $216.70 
C) $9.27, $2.17 
D) $92.65, $21.67 
A) $93.65, $22.67 
B) $926.50, $216.70 
C) $9.27, $2.17 
D) $92.65, $21.67

Question 7

Solve the problem.
-Kathy's regular hourly rate is $10.56 per hour. She is paid time-and-a-half for overtime work. What is Kathy's overtime rate?

Accepted Answer

A) $15.84 
B) $12.06 
C) $5.28 
D) $12.67 
A) $15.84 
B) $12.06 
C) $5.28 
D) $12.67

Question 8

Find the Social Security tax (6.2%), Medicare tax (1.45%), and state disability insurance deduction (1%) for the employee.
Assume the employee is under the FICA and SDI maximums at the end of the current pay period and assume that
time-and-a-half is paid for any overtime in a 40-hour week. Round to the nearest cent if needed.
-

Accepted Answer

A) $21.01, $4.91, $3.39 
B) $31.52, $7.37, $5.08 
C) $22.34, $5.23, $3.60 
D) $18.35, $4.29, $2.96 
A) $21.01, $4.91, $3.39 
B) $31.52, $7.37, $5.08 
C) $22.34, $5.23, $3.60 
D) $18.35, $4.29, $2.96

Question 9

Solve the problem. Use a FICA rate of 6.2%, a Medicare rate of 1.45%, and an SDI rate of 1%. Assume the person's
earnings will not exceed $31,800 for the year. Round to the nearest cent if needed.
-Bill Fox is paid 7% commission on sales. During a recent week, he had sales of $11,691.49 and allowances of $1,808. Find his Social Security tax, Medicare tax, and SDI deduction for the week.

Accepted Answer

A) $42.89, $10.03, $6.92 
B) $58.59, $8.18, $9.45 
C) $50.74, $11.87, $8.18 
D) $42.46, $9.93, $6.85 
A) $42.89, $10.03, $6.92 
B) $58.59, $8.18, $9.45 
C) $50.74, $11.87, $8.18 
D) $42.46, $9.93, $6.85

Question 10

Solve the problem.
-Jennifer Jones is an employee of Acme Manufacturing Company. She has an 8-hr workday and each day is paid $0.75 for each unit produced or the hourly rate, whichever is greater. Her hourly
Rate is $8.40 per hour. Last week she produced 93 units on Monday, 107 units on Tuesday, 80 units
On Wednesday, 86 units on Thursday, and 103 units on Friday. What were her gross earnings for
The week?

Accepted Answer

A) $351.65 
B) $357.65 
C) $361.65 
D) $370.45 
A) $351.65 
B) $357.65 
C) $361.65 
D) $370.45

Question 11

Use the percentage method of withholding to find the federal withholding tax, a 6.2% FICA rate to find the FICA tax, and
1.45% to find the Medicare tax. Then find the net pay for the employee. Assume that the employee has not earned over
$115,000 so far this year.    
-Thomas McKnight has gross earnings of $22,012.15 monthly. He is married and has 8 withholding allowances.

Accepted Answer

A) $24,608.96 
B) $17,731.41 
C) $16,047.48 
D) $20,328.22 
A) $24,608.96 
B) $17,731.41 
C) $16,047.48 
D) $20,328.22

Question 12

Solve the problem.
-Nancy earns $12.25 per hour. One week she worked 39.75 hours. Find her gross pay for the week.

Accepted Answer

A) $487.04 
B) $486.84 
C) $486.94 
D) $486.95 
A) $487.04 
B) $486.84 
C) $486.94 
D) $486.95

Question 13

Use the percentage method of withholding, a FICA rate of 6.2%, a Medicare rate of 1.45%, an SDI rate of 1%, and a state
withholding tax of 3.4%. One withholding allowance is $73.08 when paid weekly.  
-Charles Nave, bank teller, has weekly earnings of $610. He is married and claims 3 withholding allowances. His deductions include FICA, Medicare, federal withholding, state disability insurance,
State withholding, and credit union savings of $50. Find his net pay.

Accepted Answer

A) $513.21 
B) $425.49 
C) $463.21 
D) $453.51 
A) $513.21 
B) $425.49 
C) $463.21 
D) $453.51

Question 14

Solve the problem.
-Suppose pumpkin pickers are paid as follows:   If Nicole picks 267 pumpkins, what are her gross earnings?

Accepted Answer

A) $40.06 
B) $48.06 
C) $42.07 
D) $37.38 
A) $40.06 
B) $48.06 
C) $42.07 
D) $37.38

Question 15

Find the Social Security tax and Medicare tax on the annual gross income of a self-employed individual. For a
self-employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.
-Drew Laughlin, attorney, earned $53,081.59

Accepted Answer

A) $6,582.12, $1,539.37 
B) $3,291.06, $1,539.37 
C) $3,291.06, $769.68 
D) $6,482.12, $1,439.37 
A) $6,582.12, $1,539.37 
B) $3,291.06, $1,539.37 
C) $3,291.06, $769.68 
D) $6,482.12, $1,439.37

Question 16

Solve the problem.
-An entomologist pays Fred $0.15 for each butterfly he brings in. Find Fred's gross earnings if he brings in 75 butterflies.

Accepted Answer

A) $12.45 
B) $75.15 
C) $10.05 
D) $11.25 
A) $12.45 
B) $75.15 
C) $10.05 
D) $11.25

Question 17

Find the Social Security tax and Medicare tax on the annual gross income of a self-employed individual. For a
self-employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.
-Frank Weller, surveyor, earned $25,118.67

Accepted Answer

A) $1,557.36, $728.44 
B) $1,557.36, $364.22 
C) $3,014.72, $628.44 
D) $3,114.72, $728.44 
A) $1,557.36, $728.44 
B) $1,557.36, $364.22 
C) $3,014.72, $628.44 
D) $3,114.72, $728.44

Question 18

Solve the problem. Use a FICA rate of 6.2%, a Medicare rate of 1.45%, and an SDI rate of 1%. Assume the person's
earnings will not exceed $31,800 for the year. Round to the nearest cent if needed.
-Kay McClain is paid 7% commission on sales. During a recent week, she had sales of $6,438.71 on Monday, $1,866.17 on Tuesday, and $1,952.16 on Thursday. Find her Social Security tax, Medicare
Tax, and SDI deduction for the week.

Accepted Answer

A) $27.94, $6.54, $4.51 
B) $36.04, $4.51, $5.81 
C) $36.42, $8.52, $5.87 
D) $44.52, $10.41, $7.18 
A) $27.94, $6.54, $4.51 
B) $36.04, $4.51, $5.81 
C) $36.42, $8.52, $5.87 
D) $44.52, $10.41, $7.18

Question 19

Find the gross earnings for the employee.
-Westinghouse Paving pays its salespeople the following commissions.

Accepted Answer

A) $879.75 
B) $1,772.25 
C) $1,483.25 
D) $87,975.00 
A) $879.75 
B) $1,772.25 
C) $1,483.25 
D) $87,975.00

Question 20

Solve the problem.
-Allied Industries pays at the time-and-a-half rate for all time worked over 8 hours in any one day no matter how many hours are worked in a week. Ken Warner, an employee of Allied Industries,
Makes $9.50 an hour as his regular rate of pay. Last week he worked 13 hours on Monday, 4 hours
On Tuesday, and 8 hours on Friday. What were his gross earnings for the week?

Accepted Answer

A) $271.45 
B) $262.95 
C) $261.25 
D) $259.45 
A) $271.45 
B) $262.95 
C) $261.25 
D) $259.45

Find the Social Security and Medicare taxes on the gross earnings. Assume a 6.2% FICA rate and a 1.45% Medicare rate. Round to the nearest cent. -$411.30

Find the Social Security and Medicare taxes on the gross earnings. Assume a 6.2% FICA rate and a 1.45% Medicare rate. Round to the nearest cent. -$530.00

Find the equivalent earnings. -Chuck earns $387 a week, but is paid semimonthly. How much is he paid at the end of a pay period?

Find the hours, rate, or earnings as specified. - Find the number of regular hours, overtime hours (over 40), and the overtime rate (time and a half).

Find the Social Security and Medicare taxes on the gross earnings. Assume a 6.2% FICA rate and a 1.45% Medicare rate. Round to the nearest cent. -$1,494.29

Solve the problem. -Kathy's regular hourly rate is $10.56 per hour. She is paid time-and-a-half for overtime work. What is Kathy's overtime rate?

Solve the problem. -Nancy earns $12.25 per hour. One week she worked 39.75 hours. Find her gross pay for the week.

Solve the problem. -Suppose pumpkin pickers are paid as follows: If Nicole picks 267 pumpkins, what are her gross earnings?

Find the Social Security tax and Medicare tax on the annual gross income of a self-employed individual. For a self-employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed. -Drew Laughlin, attorney, earned $53,081.59

Solve the problem. -An entomologist pays Fred $0.15 for each butterfly he brings in. Find Fred's gross earnings if he brings in 75 butterflies.

Find the Social Security tax and Medicare tax on the annual gross income of a self-employed individual. For a self-employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed. -Frank Weller, surveyor, earned $25,118.67

Find the gross earnings for the employee. -Westinghouse Paving pays its salespeople the following commissions.

Whole Numbers and Decimals

Fractions

Percents

Equations and Formulas

Bank Services

Mathematics of Buying

Mathematics of Selling

Simple Interest

Compound Interest and Inflation

Annuities, Stocks, and Bonds

Business and Consumer Loans

Taxes and Insurance

Depreciation

Financial Statements and Ratios

Budgeting and Business Statistics

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Exam 6: Payroll