1b11_P6k_war9 - (b) Determine each of the employer's...

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Chapter 11—Current Liabilities 6. The following information is for employee Robert Ellis for the week ended March 15. Total hours worked: 48 Rate: $15 per hour, with double time for all hours in excess of 40 Federal income tax withheld: $200 United Fund deduction: $50 Cumulative earnings prior to current week: $6,400 Tax rates: Social security: 6% on maximum earnings of $100,000. Medicare tax: 1.5% on all earnings; on both employer and employee State unemployment: 3.4% on maximum earnings of $7,000; on employer Federal unemployment: 0.8% on maximum earnings of $7,000; on employer (a) Determine (1) total earnings, (2) total deductions, and (3) cash paid.
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Unformatted text preview: (b) Determine each of the employer's payroll taxes related to the earnings of Robert Ellis for the week ended March 15. ANS: (a) (1) 40 hours at $15 $600.00 8 hours at $30 240.00 $840.00 (2) Deductions: Income tax $200.00 United Fund deduction 50.00 Social Security tax, 6% of $840 50.40 Medicare tax, 1.5% of $840 12.60 313.00 (3) Cash paid $ 527.00 ========= (b) Social security and Medicare taxes, 7.5% of $840 $ 63.00 State unemployment tax, 3.4% $600 20.40 Federal unemployment tax, 0.8% $600 4.80 Total $ 88.20 ========= DIF: 4 OBJ: 04 7...
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