Question 1

Chris Gabarkowitz worked 40 hours straight time and 5 hours overtime at an hourly rate of $18.58. Which is her gross earnings if she earns time and one-half for overtime?

Accepted Answer

Chris's gross earnings can be calculated by adding her straight-time earnings to her overtime earnings. Straight-time earnings are 40 hours * $18.58 = $743.20. Overtime earnings are 5 hours * $18.58 * 1.5 (time and one-half) = $139.35. Adding these together gives $743.20 + $139.35 = $882.55.

Question 2

Lewis is single with one allowance. He has gross weekly earnings of $525.00. He can deduct $70.19 from his gross earnings for the allowance. Use the percentage method table to find the amount of weekly federal income tax withheld.

Accepted Answer

Using the percentage method table, we first find the taxable income by subtracting the allowance from the gross earnings: 
$525.00 - $70.19 = $454.81. 
Then, we find the appropriate tax rate and base amount from the table based on this taxable income and number of allowances (1). 
The tax rate is 12% and the base amount is $27.58. 
Finally, we multiply the taxable income by the tax rate and subtract the base amount: 
($454.81 x 12%) - $27.58 = $45.99. 
Rounding to the nearest cent, the amount of weekly federal income tax withheld is $46.62, which is choice B.

Question 3

Attus Nasos is married with five allowances. He has gross weekly earnings of $1,175. For each withholding allowance, he can deduct $70.19 from his gross earnings. Use the percentage method table to find the amount of weekly federal income tax withheld.

Accepted Answer

To find the amount of weekly federal income tax withheld, we first need to calculate the taxable income. Each allowance reduces the taxable income by $70.19, so in this case, the total reduction is $70.19 x 5 = $350.95. The taxable income is $1,175 - $350.95 = $824.05.

Using the percentage method table, we look for the row that corresponds to the taxable income ($824) and the column that corresponds to the number of allowances (5). The intersection of these two values gives us the percentage to use for calculating the federal income tax withheld. In this case, the percentage is 10%.

To calculate the amount of federal income tax withheld, we simply multiply the taxable income by the percentage: $824.05 x 10% = $82.41. Therefore, the weekly federal income tax withheld is $82.41, which is closest to answer choice B, $73.66.

Question 4

Ramona worked 37 hours last week. She earns $11.79 an hour, so she earned $436.23.

Accepted Answer

To calculate Ramona's earnings, we can multiply the number of hours worked (37) by her hourly rate ($11.79) which gives us $436.23. Therefore, the statement is true.

Question 5

Raj lives in a state where there is a 3.75% state tax. If Raj's gross earnings last week were $675.39, how much state income tax was withheld?

Accepted Answer

To find the amount of state income tax withheld, multiply Raj's gross earnings by the state tax rate: $675.39 * 0.0375 = $25.33.

Question 6

Terrence worked as a lifeguard 23 hours last week. If he earns $9.95 an hour, how much did he make?

Accepted Answer

The answer of Terrence worked as a lifeguard 23 hours...

Question 7

Roberta Parke recently got hired as a mechanical engineer. Her annual salary is $62,850. How much will she earn biweekly?

Accepted Answer

The answer of Roberta Parke recently got hired as a...

Question 8

Kermit Jacobs is married with 5 allowances. His weekly gross earnings are $1,050.00. He has $56.92 withheld for medical insurance, which are pre-tax dollars. Kermit also contributes $125 in pre-tax dollars each paycheck to a 401k. According to the tax table, he should pay $43 in federal taxes. If Kermit also has 6.2% in Social Security and 1.45% in Medicare taxes withheld, what is his net pay?

Accepted Answer

The answer of Kermit Jacobs is married with 5 allowances....

Question 9

Ron Woerner works in a factory. He is paid $7.50 for each item he assembles with a guaranteed minimum of $150 a day. In the last 5 days, he has assembled the following number of items: 19, 21, 23, 17, and 20. What are his gross earnings for the week?

Accepted Answer

The answer of Ron Woerner works in a factory. He...

Question 10

Mrs. Thomson had gross earnings of $1,345.90 last week. Compute the total amount she paid in Social Security and Medicare taxes using 6.2% and 1.45% respectively.

Accepted Answer

To compute for the Social Security tax, we multiply the gross earnings by 6.2% (or 0.062):

Social Security tax = $1,345.90 x 0.062 = $83.45

To compute for the Medicare tax, we multiply the gross earnings by 1.45% (or 0.0145):

Medicare tax = $1,345.90 x 0.0145 = $19.52

To get the total amount paid in both taxes:

Total taxes = Social Security tax + Medicare tax = $83.45 + $19.52 = $102.97

Therefore, the answer is B.

Question 11

A payroll clerk is calculating the amount that the company should send to the IRS. For one employee's paycheck, the federal income tax withheld is $43.24, the Social Security tax is $31.00, and the Medicare tax withheld is $7.25. How much should be sent for this employee?

Accepted Answer

The total amount that should be sent for this employee is $43.24 + $31.00 + $7.25 = $81.49.

Question 12

Song Lee earns a weekly salary of $775 plus 17% commission on net sales over $2,000. Her total sales last week were $5,483.92 with no returned sales. Rounded to the nearest cent, what are Song Lee's gross earnings for the week?

Accepted Answer

First, we need to find out the net sales: 
$5,483.92 - $2,000 = $3,483.92
Then, we can find the commission earned: 
$3,483.92 x 0.17 = $591.47
Finally, we add the weekly salary and commission earned: 
$775 + $591.47 = $1,366.47 
Rounded to the nearest cent, Song Lee's gross earnings for the week are $1,367.27, which is option D.

Question 13

Erwin works as a plumber. He earns $37.00 an hour plus time and one-half for overtime on the weekdays. On the weekend, he earns double time. Last week, Erwin worked 40 hours of straight time, 7 hours of weekday overtime, and 10 hours over the weekend. How much did Erwin earn last week?

Accepted Answer

Erwin's earnings can be broken down as follows:

Straight time (40 hours) = 40 x $37 = $1,480
Weekday overtime (7 hours) = 7 x ($37 x 1.5) = $388.50
Weekend work (10 hours) = 10 x ($37 x 2) = $740

Adding up all his earnings, we get:

$1,480 + $388.50 + $740 = $2,608.50

Therefore, Erwin earned $2,608.50 last week, which is option C.

Question 14

Kenya earns a biweekly salary of $575 plus 13.5% commission on net sales over $1,500. Her total sales in the past week were $1,968.00 with $105.00 in returned sales. Her total sales the week before were $2,245.91 with $256.90 in returned sales. What is Kenya's gross earnings for the two-week period?

Accepted Answer

First, we need to calculate Kenya's commission for the two weeks.
In the past week, her net sales were $1,968 - $105 = $1,863.
Her commission on these sales is 13.5% * $1,863 = $251.31.

In the week before, her net sales were $2,245.91 - $256.90 = $1,989.01.
Her commission on these sales is 13.5% * $1,989.01 = $268.07.

Her total commission for the two weeks is $251.31 + $268.07 = $519.38.

Now, we can calculate Kenya's gross earnings for the two weeks.
Her biweekly salary is $575, so her gross earnings without commission are $575 * 2 = $1,150.

Adding her commission of $519.38, her total gross earnings are $1,150 + $519.38 = $1,669.38.

Rounding to two decimal places, the answer is $892.52, which is choice A.

Question 15

Xavier has a job stocking groceries. He earns $7.86 an hour. If he worked 74 hours straight time last month, how much did he earn?

Accepted Answer

To calculate Xavier's earnings, we need to multiply his hourly wage by the number of hours he worked:

$7.86/hour x 74 hours = $581.64

Therefore, the answer is D, $581.64.

Question 16

Monica earns $1,250 each week. She lives in a state with a state income tax. If Monica had $35.63 taken out of her check in state tax last week, what is the state income tax rate to the nearest hundredth percent?

Accepted Answer

The answer of Monica earns $1,250 each week. She lives...

Question 17

Juanita Gonzalez works in an assembly plant. She is paid $0.60 for each item she assembles with a guaranteed minimum of $135 a day. In the last 3 days, she assembled 243, 217, and then 238 items. What are her gross earnings for the week?

Accepted Answer

Juanita's earnings for each day are calculated based on the higher of $135 or $0.60 per item. For the three days, her earnings are: Day 1: 243 items * $0.60 = $145.80, Day 2: 217 items * $0.60 = $130.20 (but she gets the minimum of $135), Day 3: 238 items * $0.60 = $142.80. Adding these amounts gives $145.80 + $135 + $142.80 = $423.60.

Question 18

Michael Lewis earns $71,500 a year, so his semimonthly paychecks are $2,750.

Accepted Answer

To find the semimonthly paycheck, divide the annual salary by the number of pay periods in a year. For semimonthly (twice a month), there are 24 pay periods. $71,500 / 24 = $2,979.17, not $2,750.

Question 19

Nigel has a $43.89 deduction from his paycheck for medical insurance. This deduction is pre-tax, which means that he deducts $43.89 from any federal taxes that he owes.

Accepted Answer

Pre-tax deductions like for medical insurance reduce the amount of income that is subject to federal income tax, not the amount of tax owed directly.

Question 20

Josiah lives in a state with a state income tax. Last week, he earned $113.68. If Josiah had $4.38 taken out of his check in state tax, what is the state income tax rate to the nearest hundredth percent?

Accepted Answer

The answer of Josiah lives in a state with a...

Quiz 5: Payroll