1. The following information is for employee Mary Ryan for the week ended March
ID: 2428399 • Letter: 1
Question
1. The following information is for employee Mary Ryan for the week ended March 15.Total year-to-date earnings as of March 8: $6,400
Total hours worked: 46
Rate: $20 per hour with double time for all hours in excess of 40
Federal income tax withheld: $180
United fund deduction: $25
Tax rates:
FICA: 7.5%
State unemployment: 5.4% 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.
(b) Determine each of the employer’s payroll taxes related to the earnings of Mary Ryan for the week ended March 15.
Explanation / Answer
a)1.Total earnings : Earning of march 8, $6,400 Earnings for double time(46-40=6hours) (6hours * 40=$240) 240 __________ Total earnings $6,640 ___________ 2. Total deductions: Federal income tax withheld $180 United fund deduction 25 FICA: 7.5%($6,640*7.5%) 498 State unemployment (6,640*5.4%) 359 Federal unemployment 0.8%(6,640*0.8 53 ______________ Total deductions $1,115 _______________ 3.Cash paid: Total earnings - total deductions = $6,640 - $1,115 = $5,525 b) Employer's pay roll taxes as follows: Payroll Tax Expense $1,115 Federal income tax withheld $180 United fund deduction 25 F.I.C.A. Taxes payable 498 State unemployment tax payable 359 Federal unemployment tax 53 (To record the employer's payrll taxes)
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