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%; and Medicare tax rate,1.5%; state unemployment compensation tax,3.4% on the first $7,000; federal unemployment compensation tax,0.8% on the first $7,000.
Calculate the employer's payroll tax expense if:
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.
c the employee's cumulative earnings for the year prior to this week equal $118,700.

Question

Quizplus · Accepted Answer

The Answer of 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%; and Medicare tax rate,1.5%; state unemployment compensation tax,3.4% on the first $7,000; federal unemployment compensation tax,0.8% on the first $7,000.
Calculate the employer's payroll tax expense if:
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.
c the employee's cumulative earnings for the year prior to this week equal $118,700.

An Employee Receives an Hourly Rate of $45,with Time and a Half