For the purposes of the following problems, use these percentages: Social securi
ID: 2425298 • Letter: F
Question
For the purposes of the following problems, use these percentages:
Social security (fica) – 6.2%
Medicare – 1.45%
Federal withholding – 15% ( usually the tax chart is used but for these problems use the percentage)
State withholding – 3%
City withholding – 2%
A)Compute the payroll for George Smith. He worked 40 hours and earned $10 per hour.
B)Compute the payroll for Jim Jones. He worked 50 hours at $15 per hour. The company pays time and a half for hours worked over 40.
C)Compute the payroll for Ginger Zee. She is paid a salary of $2,500.
D)Assume that’s all the payroll the company had this month. Compute the federal unemployment, state unemployment and workers compensation for the group using the following percentages:
What is the total payments the company will make for these taxes?
Federal unemployment - 0.8%
State unemployment – 3.0%
Workers compensation – 2.5%
Explanation / Answer
A.
total earning $400
- deduction
social security (24.8)
medicare (5.8)
federal withholding (60)
state withholding (12)
city withholding (8)
Pay roll $289.4
B
income earned 50*15+10*7.5 = 825
total deduction
(6.2+1.45+15+3+2)% 228.11
Payroll 596.89
C.
earning 2500
deductin @27.65% 691.25
payroll $1808.75