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Contemporary Mathematics for Business and Consumers

Robert Brechner

Chapter 9

Payroll - all with Video Answers

Educators

Chapter Questions

Problem 1

Westside Auto Supply has 8 delivery truck drivers, each with gross earnings of $$\$ 570$$ per week.
a. What are the total social security and Medicare taxes that should be withheld from these employees' paychecks each week?
b. What is the employer's share of these taxes for these employees for the first quarter of the year?

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Problem 1

Calculate the gross earnings per pay period for the following pay schedules.
Annual Salary Monthly Semimonthly Biweekly Weekly
$$
\begin{array}{|c|c|c|c|c|c|}
\hline & \text { Annual Salary } & \text { Monthly } & \text { Semimonthly } & \text { Biweekly } & \text { Weekly } \\
\hline & \$ 15,000 & - & - & - & - \\
\hline
\end{array}
$$

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Problem 1

Solve the following problems using $6.2 \%$, up to $$\$ 106,800$$, for social security tax and $1.45 \%$, no wage limit, for Medicare tax.
What are the withholdings for social security and Medicare for an employee with gross earnings of $$\$ 825$$ per week?

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Problem 2

Calculate the gross earnings per pay period for the following pay schedules.
$$
\begin{array}{|c|c|c|c|c|c|}
\hline & \text { Annual Salary } & \text { Monthly } & \text { Semimonthly } & \text { Biweekly } & \text { Weekly } \\
\hline & \$ 44,200 & - & - & - & - \\
\hline
\end{array}
$$

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02:25

Problem 2

Fandango Fumiture Manufacturing, Inc., has 40 employees on the assembly line, each with gross earnings of $$\$ 325$$ per week.
a. What are the total social security and Medicare taxes that should be withheld from the employees' paychecks each week?
b. What is the employer's share of these taxes for the first quarter of the year for these employees?

Alexander Cheng
Alexander Cheng
Numerade Educator

Problem 2

Solve the following problems using $6.2 \%$, up to $$\$ 106,800$$, for social security tax and $1.45 \%$, no wage limit, for Medicare tax.
What are the social security and Medicare withholdings for an executive whose annual gross earnings are $$\$ 108,430$$ ?

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Problem 3

Solve the following problems using $6.2 \%$, up to $$\$ 106,800$$, for social security tax and $1.45 \%$, no wage limit, for Medicare tax.
Brian Hickman is an executive with Westco Distributors. His gross earnings are $$\$ 9.800$$ per month.
a. What are the withholdings for social security and Medicare for Brian in his January paycheck?
b. In what month will Brian's salary reach the social security wage base limit?
c. What are the social security and Medicare tax withholdings for Brian in the month named in part $\mathbf{b}$ ?

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01:09

Problem 3

Arrow Asphalt & Paving Company has 24 employees, 15 with gross earnings of $$\$ 345$$ per week and nine with gross earnings of $$\$ 385$$ per week. What is the total social security and Medicare tax the company must send to the Internal Revenue Service for the first quarter of the year?

Alexander Cheng
Alexander Cheng
Numerade Educator

Problem 3

Calculate the gross earnings per pay period for the following pay schedules.
$$
\begin{array}{|c|c|c|c|c|c|}
\hline & \text { Annual Salary } & \text { Monthly } & \text { Semimonthly } & \text { Biweekly } & \text { Weekly } \\
\hline & \$ 100,000 & \text { - } & \text { - } & \text { - } & - \\
\hline
\end{array}
$$

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01:48

Problem 4

Solve the following problems using $6.2 \%$, up to $$\$ 106,800$$, for social security tax and $1.45 \%$, no wage limit, for Medicare tax.
Kristy Dunaway has biweekly gross earnings of $$\$ 1,750$$. What are her total social security and Medicare tax withholdings for a whole year?

Kristen Frankie
Kristen Frankie
Numerade Educator

Problem 4

What are the social security and Medicare taxes due on gross earnings of $\$ 53,200$ per year for Tricia Marvel, a self-employed commercial artist?

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Problem 4

Calculate the gross earnings per pay period for the following pay schedules.
Annual Salary Monthly Semimonthly Biweekly Weekly
$$
\begin{array}{|c|c|c|c|c|c|}
\hline & \text { Annual Salary } & \text { Monthly } & \text { Semimonthly } & \text { Biweekly } & \text { Weekly } \\
\hline & \$ 21,600 & - & - & - & - \\
\hline
\end{array}
$$

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Problem 5

As payroll manager for Freeport Enterprises, it is your task to calculate the monthly social security and Medicare withholdings for the following employees.
$$
\begin{array}{lcccc}
{\text { Employee }} & \begin{array}{c}
\text { Year-to-Date } \\
\text { Earnings }
\end{array} & \begin{array}{c}
\text { Current } \\
\text { Month }
\end{array} & \text { Social Security } & \text { Medicare } \\
\hline \text { Perez, J. } & \$ 23,446 & \$ 3,422 & - & - \\
\end{array}
$$

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02:14

Problem 5

What are the social security and Medicare taxes due on gross earnings of $$\$ 42,600$$ per year for a self-employed person?

Md.Daniyal Arshad
Md.Daniyal Arshad
Numerade Educator

Problem 5

Calculate the gross earnings per pay period for the following pay schedules.
$$
\begin{array}{|c|c|c|c|c|c|}
\hline & \text { Annual Salary } & \text { Monthly } & \text { Semimonthly } & \text { Biweekly } & \text { Weekly } \\
\hline & \text { - } & - & \$ 1,450.00 & - & \text { - } \\
\hline
\end{array}
$$

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Problem 6

Calculate the gross earnings per pay period for the following pay schedules.
$$
\begin{array}{|c|c|c|c|c|c|}
\hline & \text { Annual Salary } & \text { Monthly } & \text { Semimonthly } & \text { Biweekly } & \text { Weekly } \\
\hline & - & - & - & \$ 875.00 & - \\
\hline
\end{array}
$$

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01:25

Problem 6

Lee Sutherlin is a self-employed electrical consultant. He estimates his annual net earnings at 4$\$ 38,700$$. How much social security and Medicare must he pay this year?

Anas Venkitta
Anas Venkitta
Numerade Educator

Problem 6

As payroll manager for Freeport Enterprises, it is your task to calculate the monthly social security and Medicare withholdings for the following employees.
$$
\begin{array}{lcccc}
{\text { Employee }} & \begin{array}{c}
\text { Year-to-Date } \\
\text { Earnings }
\end{array} & \begin{array}{c}
\text { Current } \\
\text { Month }
\end{array} & \text { Social Security } & \text { Medicare } \\
\text { Graham, C. } & \$ 14,800 & \$ 1,540 & - & - \\
\end{array}
$$

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Problem 7

Calculate the gross earnings per pay period for the following pay schedules.
$$
\begin{array}{|c|c|c|c|c|c|}
\hline & \text { Annual Salary } & \text { Monthly } & \text { Semimonthly } & \text { Biweekly } & \text { Weekly } \\
\hline & - & - & - & - & \$335.00 \\
\hline
\end{array}
$$

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03:49

Problem 7

Barry Michaels earns $$\$ 36,500$$ per year as the housewares manager at the Home Design Center.
a. If the SUTA tax nate is $5.4 \%$ of the first $$\$ 7.000$$ earned each year, how much SUTA tax must the company pay each year for Barry?
b. If the FUTA tax rate is $6.2 \%$ of the first $$\$ 7,000$$ eamed in a year minus the SUTA tax paid, how much FUTA tax must the company pay each year for Barry?

Amanda Stein
Amanda Stein
Numerade Educator

Problem 7

As payroll manager for Freeport Enterprises, it is your task to calculate the monthly social security and Medicare withholdings for the following employees.
$$
\begin{array}{lcccc}
{\text { Employee }} & \begin{array}{c}
\text { Year-to-Date } \\
\text { Earnings }
\end{array} & \begin{array}{c}
\text { Current } \\
\text { Month }
\end{array} & \text { Social Security } & \text { Medicare } \\
\text { Jagger, R. } & \$ 105,200 & \$ 4,700 & - & - \\
\end{array}
$$

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01:48

Problem 8

Mary Jo Prenaris is an office manager with gross earnings of $$\$ 1,600$$ semimonthly. If her company switches pay schedules from semimonthly to biweekly, what are Mary Jo's new gross earnings?

Andrew Bassila
Andrew Bassila
Numerade Educator

Problem 8

As payroll manager for Freeport Enterprises, it is your task to calculate the monthly social security and Medicare withholdings for the following employees.
$$
\begin{array}{lcccc}
{\text { Employee }} & \begin{array}{c}
\text { Year-to-Date } \\
\text { Earnings }
\end{array} & \begin{array}{c}
\text { Current } \\
\text { Month }
\end{array} & \text { Social Security } & \text { Medicare } \\
\text { Andretti, K. } & \$ 145,000 & \$ 12,450 & - & -
\end{array}
$$

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01:52

Problem 8

Dave O’Bannon earns $$\$ 41,450$$ annually as a line supervisor for Redwood Manufacturers.
a. If the SUTA tax rate is $5.4 \%$ of the first $$\$ 7,000$$ earned in a year, how much SUTA tax must Redwood pay each year for Dave?
b. If the FUTA tax rate is $6.2 \%$ of the first $$\$ 7,000$$ eamed in a year minus the SUTA tax paid, how much FUTA tax must the company pay each year for Dave?

Alexander Cheng
Alexander Cheng
Numerade Educator

Problem 9

Use the percentage method of income tax calculation to complete the following payroll roster.
$$
\begin{array}{rcclrc}
{\text { Employee }} & \begin{array}{c}
\text { Marital } \\
\text { Status }
\end{array} & \begin{array}{c}
\text { Withholding } \\
\text { Allowances }
\end{array} & {\begin{array}{c}
\text { Pay } \\
\text { Period }
\end{array}} & \begin{array}{c}
\text { Gross } \\
\text { Earnings }
\end{array} & \begin{array}{l}
\text { Income Tax } \\
\text { Withholding }
\end{array} \\
\text { Randolph, B. } & \mathrm{M} & 2 & \text { Weekly } & \$ 594 & - \\
\end{array}
$$

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01:19

Problem 9

Tanya Willis worked part time last year as a cashier in a Safeway Supermarket. Her total gross earnings were $$\$ 6,443$$.
a. How much SUTA tax must the supermarket pay to the state for Tanya?
b. How much FUTA tax must be paid for her?

Teresa Fuston
Teresa Fuston
Numerade Educator
01:48

Problem 9

Deb O'Connell is an accounting professional earning a salary of $$\$ 58,000$$ at her firm. What is her equivalent weekly gross pay?

Sarah Wharton
Sarah Wharton
Numerade Educator

Problem 10

Use the percentage method of income tax calculation to complete the following payroll roster.
$$
\begin{array}{rcclrc}
{\text { Employee }} & \begin{array}{c}
\text { Marital } \\
\text { Status }
\end{array} & \begin{array}{c}
\text { Withholding } \\
\text { Allowances }
\end{array} & {\begin{array}{c}
\text { Pay } \\
\text { Period }
\end{array}} & \begin{array}{c}
\text { Gross } \\
\text { Earnings }
\end{array} & \begin{array}{l}
\text { Income Tax } \\
\text { Withholding }
\end{array} \\
\text { White, W. } & \mathrm{S} & 0 & \text { Semimonthly } & \$ 1,227 & - \\
\end{array}
$$

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02:25

Problem 10

Amazon Appliance Company has three installers. Larry earns $$\$ 355$$ per week, Curly earns $$\$ 460$$ per week, and Moe earns $$\$ 585$$ per week. The company's SUTA rate is $5.4 \%$, and the FUTA rate is $6.2 \%$ minus the SUTA. As usual, these taxes are paid on the first $$\$ 7,000$$ of each employee's earnings.
a. How much SUTA and FUTA tax does Amazon owe for the first quarter of the year?
b. How much SUTA and FUTA tax does Amazon owe for the second quarter of the year?

Alexander Cheng
Alexander Cheng
Numerade Educator
01:54

Problem 10

Jennifer Brunner works 40 hours per week as a chef's assistant. At the rate of $$\$ 7.60$$ per hour, what are her gross weekly earnings?

AG
Ankit Gupta
Numerade Educator
01:38

Problem 11

Jiffy Janitorial Service employs 48 workers and has a gross payroll of $$\$ 25,200$$ per week. Fringe benefits are $6.4 \%$ for sick days and holiday leave, $5.8 \%$ for health and hospital insurance, and $$\$ 14.50$$ per employee per week for uniform allowance.
a. What is the total weekly cost of fringe benefits for Jiffy?
b. What percent of payroll does this represent?
c. What is Jiffy's annual cost of fringe benefits?

AG
Ankit Gupta
Numerade Educator
01:22

Problem 11

Alan Kimball earns $$\$ 22.34$$ per hour as a specialty chef at Le Bistro Restaurant. If he worked 53 hours last week and was paid time-and-ahalf for weekly hours over 40 , what was his gross pay?

Lynn Larson
Lynn Larson
Numerade Educator

Problem 11

Use the percentage method of income tax calculation to complete the following payroll roster.
$$
\begin{array}{rcclrc}
{\text { Employee }} & \begin{array}{c}
\text { Marital } \\
\text { Status }
\end{array} & \begin{array}{c}
\text { Withholding } \\
\text { Allowances }
\end{array} & {\begin{array}{c}
\text { Pay } \\
\text { Period }
\end{array}} & \begin{array}{c}
\text { Gross } \\
\text { Earnings }
\end{array} & \begin{array}{l}
\text { Income Tax } \\
\text { Withholding }
\end{array} \\
\text { Milian, B. } & \mathrm{S} & 1 & \text { Monthly } & \$ 4,150 & - \\
\end{array}
$$

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Problem 12

North Beach Limousine Service employs 166 workers and has a gross payroll of $$\$ 154,330$$ per week. Fringe benefits are $4 \frac{1}{2} \%$ of gross payroll for sick days and maternity leave, $7.4 \%$ for health insurance, $3.1 \%$ for the retirement fund, and $$\$ 26.70$$ per employee per week for a stock purchase plan.
a. What is the total weekly cost of fringe benefits for the company?
b. What percent of payroll does this represent? Round to the nearest tenth of a percent.
c. What is the company's annual cost of fringe benefits?

SE
Steven Ellsmoor
Numerade Educator
01:22

Problem 12

Paul Curcio earns $$\$ 8.25$$ per hour for regular time up to 40 hours, time-and-a-half for overtime, and double time for the midnight shift. Last week Paul worked 58 hours, including 6 on the midnight shift. What are his gross earnings?

Lynn Larson
Lynn Larson
Numerade Educator

Problem 12

Use the percentage method of income tax calculation to complete the following payroll roster.
$$
\begin{array}{rcclrc}
{\text { Employee }} & \begin{array}{c}
\text { Marital } \\
\text { Status }
\end{array} & \begin{array}{c}
\text { Withholding } \\
\text { Allowances }
\end{array} & {\begin{array}{c}
\text { Pay } \\
\text { Period }
\end{array}} & \begin{array}{c}
\text { Gross } \\
\text { Earnings }
\end{array} & \begin{array}{l}
\text { Income Tax } \\
\text { Withholding }
\end{array} \\
\text { Farley, D. } & \mathrm{M} & 4 & \text { Biweekly } & \$ 1,849 & -
\end{array}
$$

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00:43

Problem 13

Marc Batchelor, a self-employed sales consultant, has estimated annual earnings of $$\$ 300,000$$ this year. His social security tax rate is $12.4 \%$ up to the wage base, Medicare is $2.9 \%$, and his federal income tax rate is $24 \%$.
a. How much estimated tax must Marc send to the IRS each quarter?
b. What form should he use?

Brandon Fox
Brandon Fox
Numerade Educator

Problem 13

As the payroll manager for Stargate Industries, your task is to complete the following weekly payroll record. The company pays overtime for all hours worked over 40 at the rate of time-and-a-half. Round to the nearest cent when necessary.
$$
\begin{array}{lccccccccccccc}
\text { Employee } & \text { M } & \text { T } & \text { W } & \text { T } & \text { F } & \text { S } & \text { S } & \begin{array}{c}
\text { Hourly } \\
\text { Rate }
\end{array} & \begin{array}{c}
\text { Total } \\
\text { Hours }
\end{array} & \begin{array}{c}
\text { Overtime } \\
\text { Hours }
\end{array} & \begin{array}{c}
\text { Regular } \\
\text { Pay }
\end{array} & \begin{array}{c}
\text { Overtime } \\
\text { Pay }
\end{array} & \begin{array}{c}
\text { Total } \\
\text { Pay }
\end{array} \\
\hline \text { Peters } & 7 & 8 & 5 & 8 & 8 & 0 & 0 & \$ 8.70 & - & - & - & - & -
\end{array}
$$

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Problem 13

Use the combined wage bracket tables, Exhibits 9-3 and 9-4, to solve Exercises 13–19.
How much combined tax should be witheld from the paycheck of a married employee earning $$\$ 1,075$$ per week and claiming four withholding allowances?

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06:30

Problem 14

You are the Human Resource Manager for Sunlink International, a cellular phone company with 800 employees. Top management has asked you to implement three additional fringe benefits that were negotiated with employee representatives and agreed upon by a majority of the employees. These include group term life insurance, a group legal services plan, and a wellness center.
The life insurance is estimated to cost $$\$ 260$$ per employee per quarter. The legal plan will cost $$\$ 156$$ semiannually per employee. The company will contribute $40 \%$ to the life insurance premium and $75 \%$ to the cost of the legal services plan. The employees will pay the balance through payroll deductions from their biweekly paychecks. In addition, they will be charged $\frac{1}{4} \%$ of their gross earnings per paycheck for maintaining the wellness center. The company will pay the initial cost of $$\$ 500,000$$ to build the center. This expense will be spread over 5 years.
a. What total amount should be deducted per paycheck for these new fringe benefits for an employee earning $$\$ 41,600$$ per year?
b. What is the total annual cost of the new fringe benefits to Sunlink?

Nicole C
Nicole C
Numerade Educator

Problem 14

Use the combined wage bracket tables, Exhibits 9-3 and 9-4, to solve Exercises 13–19.
How much combined tax should be withheld from the paycheck of a single employee earning $$\$ 3,185$$ per month and claiming zero witholding allowances?

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Problem 14

As the payroll manager for Stargate Industries, your task is to complete the following weekly payroll record. The company pays overtime for all hours worked over 40 at the rate of time-and-a-half. Round to the nearest cent when necessary.
$$
\begin{array}{lccccccccccccc}
\text { Employee } & \text { M } & \text { T } & \text { W } & \text { T } & \text { F } & \text { S } & \text { S } & \begin{array}{c}
\text { Hourly } \\
\text { Rate }
\end{array} & \begin{array}{c}
\text { Total } \\
\text { Hours }
\end{array} & \begin{array}{c}
\text { Overtime } \\
\text { Hours }
\end{array} & \begin{array}{c}
\text { Regular } \\
\text { Pay }
\end{array} & \begin{array}{c}
\text { Overtime } \\
\text { Pay }
\end{array} & \begin{array}{c}
\text { Total } \\
\text { Pay }
\end{array} \\
\hline \text { Sands } & 6 & 5 & 9 & 8 & 10 & 7 & 0 & \$ 9.50 & - & - &- & - & -
\end{array}
$$

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Problem 15

Use the combined wage bracket tables, Exhibits 9-3 and 9-4, to solve Exercises 13–19.
Jeremy Dunn is single, claims two withholding allowances, and earns $$\$ 4,025$$ per month. Calculate the amount of Jeremy's paycheck after his employer withholds social security, Medicare, and federal income tax.

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Problem 15

As the payroll manager for Stargate Industries, your task is to complete the following weekly payroll record. The company pays overtime for all hours worked over 40 at the rate of time-and-a-half. Round to the nearest cent when necessary.
$$
\begin{array}{lccccccccccccc}
\text { Employee } & \text { M } & \text { T } & \text { W } & \text { T } & \text { F } & \text { S } & \text { S } & \begin{array}{c}
\text { Hourly } \\
\text { Rate }
\end{array} & \begin{array}{c}
\text { Total } \\
\text { Hours }
\end{array} & \begin{array}{c}
\text { Overtime } \\
\text { Hours }
\end{array} & \begin{array}{c}
\text { Regular } \\
\text { Pay }
\end{array} & \begin{array}{c}
\text { Overtime } \\
\text { Pay }
\end{array} & \begin{array}{c}
\text { Total } \\
\text { Pay }
\end{array} \\
\hline \text { Warner } & 8 & 6 & 11 & 7 & 12 & 0 & 4 & \$ 7.25 & - & - & - & - & -
\end{array}
$$

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Problem 16

Use the combined wage bracket tables, Exhibits 9-3 and 9-4, to solve Exercises 13–19.
$$
\begin{array}{lcclcc}
{\text { Employee }} & \begin{array}{c}
\text { Marital } \\
\text { Status }
\end{array} & \begin{array}{c}
\text { Withholding } \\
\text { Allowances }
\end{array} & \begin{array}{c}
\text { Pay } \\
\text { Period }
\end{array} & \begin{array}{c}
\text { Gross } \\
\text { Earnings }
\end{array} & \begin{array}{c}
\text { Combined } \\
\text { Withholding }
\end{array} \\
\text { Alton, A. } & \mathrm{S} & 3 & \text { Monthly } & \$ 4,633 & - \\
\end{array}
$$

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Problem 16

$$
\begin{array}{lccccccccccccc}
\text { Employee } & \text { M } & \text { T } & \text { W } & \text { T } & \text { F } & \text { S } & \text { S } & \begin{array}{c}
\text { Hourly } \\
\text { Rate }
\end{array} & \begin{array}{c}
\text { Total } \\
\text { Hours }
\end{array} & \begin{array}{c}
\text { Overtime } \\
\text { Hours }
\end{array} & \begin{array}{c}
\text { Regular } \\
\text { Pay }
\end{array} & \begin{array}{c}
\text { Overtime } \\
\text { Pay }
\end{array} & \begin{array}{c}
\text { Total } \\
\text { Pay }
\end{array} \\
\hline \text { Lee } & 9 & 7 & 7 & 7 & 9 & 0 & 8 & \$ 14.75 & - & - & - & - & -
\end{array}
$$

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Problem 17

Use the combined wage bracket tables, Exhibits 9-3 and 9-4, to solve Exercises 13–19.
$$
\begin{array}{lcclcc}
{\text { Employee }} & \begin{array}{c}
\text { Marital } \\
\text { Status }
\end{array} & \begin{array}{c}
\text { Withholding } \\
\text { Allowances }
\end{array} & \begin{array}{c}
\text { Pay } \\
\text { Period }
\end{array} & \begin{array}{c}
\text { Gross } \\
\text { Earnings }
\end{array} & \begin{array}{c}
\text { Combined } \\
\text { Withholding }
\end{array} \\
\text { Emerson, P. } & \mathrm{M} & 5 & \text { Weekly } & \$ 937 & - \\
\end{array}
$$

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01:22

Problem 17

Larry Jefferson gets paid a straight piecework rate of $$\$ 3.15$$ for each altemator he assembles for Allied Mechanical Corp. If he assembled 226 units last week, what was his gross pay?

Lynn Larson
Lynn Larson
Numerade Educator

Problem 18

Use the combined wage bracket tables, Exhibits 9-3 and 9-4, to solve Exercises 13–19.
$$
\begin{array}{lcclcc}
{\text { Employee }} & \begin{array}{c}
\text { Marital } \\
\text { Status }
\end{array} & \begin{array}{c}
\text { Withholding } \\
\text { Allowances }
\end{array} & \begin{array}{c}
\text { Pay } \\
\text { Period }
\end{array} & \begin{array}{c}
\text { Gross } \\
\text { Earnings }
\end{array} & \begin{array}{c}
\text { Combined } \\
\text { Withholding }
\end{array} \\
\text { Reese, S. } & \mathrm{M} & 4 & \text { Weekly } & \$ 1,172 & - \\
\end{array}
$$

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Problem 18

Calculate last week’s total gross pay for each of the following employees.
$$
\begin{array}{lcc}
{\text { Employee }} & \text { Garments Produced } & \text { Total Gross Pay } \\
\hline \text { Goodrich, P. } & 109 & - \\
\end{array}
$$

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Problem 19

Calculate last week’s total gross pay for each of the following employees.
$$
\begin{array}{lcc}
{\text { Employee }} & \text { Garments Produced } & \text { Total Gross Pay } \\
\text { Walker, A. } & 83 & - \\
\end{array}
$$

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Problem 19

Use the combined wage bracket tables, Exhibits 9-3 and 9-4, to solve Exercises 13–19.
$$
\begin{array}{lcclcc}
{\text { Employee }} & \begin{array}{c}
\text { Marital } \\
\text { Status }
\end{array} & \begin{array}{c}
\text { Withholding } \\
\text { Allowances }
\end{array} & \begin{array}{c}
\text { Pay } \\
\text { Period }
\end{array} & \begin{array}{c}
\text { Gross } \\
\text { Earnings }
\end{array} & \begin{array}{c}
\text { Combined } \\
\text { Withholding }
\end{array} \\
\text { Benson, K. } & \mathrm{S} & 1 & \text { Monthly } & \$ 3,128 & -
\end{array}
$$

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Problem 20

Calculate last week’s total gross pay for each of the following employees.
$$
\begin{array}{lcc}
{\text { Employee }} & \text { Garments Produced } & \text { Total Gross Pay } \\
\text { Fox, B. } & 174 &
\end{array}
$$

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Problem 20

You are the payroll manager for the Canyon Ridge Resort. Mark Kelsch, the marketing director, earns a salary of $$\$ 43,200$$ per year, payable monthly. He is married and claims four withholding allowances. His social security number is 444-44-4444.
In addition to federal income tax, social security, and Medicare, Mark pays $2.3 \%$ state income tax, $\frac{1}{2} \%$ for state disability insurance (both based on gross earnings), $$\$23.74$$ for term life insurance, $$\$122.14$$ to the credit union, and $$\$40$$ to the United Way.
Fill out the following payroll voucher for Mark for the month of April.
Canyon Ridge Resort
$\underline{\text { Payroll Voucher }}$
$$
\begin{array}{ll}
\text { Employee:-------- } & \text { Tax Filing Status:---------------- } \\
\text { SSN:--------------- } & \text { Withholding Allowances:-------- } \\
\end{array}
$$
Full-time Pay Period From________________ To_________________
$\underline{\text { Primary Withholdings: }}$ $\underline{\text { Additional Withholdings: }}$
Federal income tax ___________ _________________
Social security ________________ _________________
Medicare _____________________ _________________
State income tax _____________ ________________
State disability _______________ ________________
Gross Earnings: ____________
2 Total withholdings: ____________
NET PAY __________
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02:00

Problem 21

Katrina Byrd assembles motor mounts for C-207 executive planes. Her company has established a differential piecework scale as an incentive to increase production due to backlogged onders. The pay scale is $$\$ 11.50$$ for the first 40 mounts, $$\$ 12.35$$ for the next 30 mounts, $$\$ 13.00$$ for the next 20 mounts, and $$\$ 13.40$$ for all remaining mounts assembled during the week. Katrina assembled 96 mounts last week. What was her total gross pay?

Erika Bustos
Erika Bustos
Numerade Educator
01:22

Problem 22

Bob Farrell works for a company that manufactures small appliances. Bob is paid $$\$ 2.00$$ for each toaster, $$\$ 4.60$$ for each microwave oven, and $$\$ 1.55$$ for each food blender he assembles. If he produced 56 toasters, 31 microwave ovens, and 79 blenders, what were his total weekly gross earnings?

Lynn Larson
Lynn Larson
Numerade Educator
01:10

Problem 23

What is the total gross pay for a salesperson on a straight commission of $4.7 \%$ if his or her sales volume is $$\$ 123,200$$ ?

Landon Basham
Landon Basham
Numerade Educator
01:39

Problem 24

Pamela Mello is paid on an incremental commission schedule. She is paid $2.6 \%$ on the first $$\$ 60,000$$ and $3.4 \%$ on any sales over $$\$ 60,000$$. If her weekly sales volume was $$\$ 89,400$$, what was her total commission?

Landon Basham
Landon Basham
Numerade Educator
01:23

Problem 25

Dory Schrader is a buyer for Oceans of Notions. She is paid a weekly salary of $$\$ 885$$ plus a $4 \%$ commission on sales over $$\$ 45,000$$. If her sales were $$\$ 62,000$$ last week, what was her total gross pay?

Landon Basham
Landon Basham
Numerade Educator
01:56

Problem 26

Thomas Rendell's company pays him a straight $6 \%$ commission with a $$\$ 1,350$$ drawing account each month. If his sales last month totaled $$\$ 152,480$$, how much commission is owed to Thomas?

Vipender Yadav
Vipender Yadav
Numerade Educator
03:52

Problem 27

Katie Jergens works for Dynamic Designs selling clothing. She is on a salary of $$\$ 140$$ per week plus a commission of $7 \%$ of her sales. Last week she sold 19 dresses at $$\$ 79.95$$ each, 26 skirts at $$\$ 24.75$$ each, and 17 jackets at $$\$ 51.50$$ each. What were her total gross earnings for the week?

Ruby P
Ruby P
Numerade Educator
01:22

Problem 28

Jerry King is a server in a restaurant that pays a salary of $$\$ 22$$ per day. He also averages tips of $18 \%$ of his total gross food orders. Last week he worked 6 days and had total food orders of $$\$ 2,766.50$$. What was his total gross pay for the week?

Lynn Larson
Lynn Larson
Numerade Educator
05:41

Problem 29

In an effort to keep low-wage workers' salaries commensurate with the cost of living. a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation. As of October 2009, 10 states-Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Oregon, Vermont, and Washington - had ticd their minimum wage to inflation.
You are the accountant for Delicious, Inc., a company that owns a chain of 18 fast-food restaurants in Florida. Each restaurant employs 35 workers, each averaging 20 hours per week at the current federal minimum wage, $$\$7.25$$ per hour.
a. How many hours at minimum wage are paid out each week by Delicious?
b. At the current rate of $$\$ 7.25$$ per hour, what is the amount of the weekly "minimum wage" portion of the restaurant's payroll?
c. If the inflation rate this year is $.7 \%$, calculate the "adjusted" minimum wage rate to be paid next year.
d. How much in "additional wages" will Delicious have to pay out next year at the adjusted rate?
e. (Optional) Go to www.dol.gov/whd/minwage/america.htm and click on your state to find the current minimum wage. Calculate the weekly "minimum wage" portion of the restaurant's payroll assuming the restaurant is located in your state.
f. (Optional) Suggest some ways that the restaurant chain or other small businesses can offset the increase in payroll and subsequent decrease in profit as a result of the minimum wage hike.

Christian Le Doux
Christian Le Doux
Numerade Educator