An employee receives an hourly rate of $45, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $950; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 5,4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000. Determine the employer's payroll tax expense if: Round your answers to two decimal places. a. This is the first payroll of the year and the employee has no cumulative earnings for the year to date. b. The employee's cumulative earnings for the year prior to this week equal $5,200.
An employee receives an hourly rate of $45, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $950; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 5,4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000. Determine the employer's payroll tax expense if: Round your answers to two decimal places. a. This is the first payroll of the year and the employee has no cumulative earnings for the year to date. b. The employee's cumulative earnings for the year prior to this week equal $5,200.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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F42
Transcribed Image Text:An employee receives an hourly rate of $45, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows:
hours worked, 48; federal income tax withheld, $950; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 5.4% on the first
$7,000; federal unemployment compensation tax, 0.8% on the first $7,000.
Determine the employer's payroll tax expense if: Round your answers to two decimal places.
a. This is the first payroll of the year and the employee has no cumulative earnings for the year to date.
b. The employee's cumulative earnings for the year prior to this week equal $6,200.
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