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BrechnerBergeman’s Contemporary Mathematics for Business & Consumers, Brief Edition, 8th Edition test bank

1. The term ____________________ earnings means the total amount of earnings due an employee for work performed before payroll deductions are The term ____________________ earnings means the total amount of earnings due an employee for work performed before payroll deductions are :   gross

2. A(n) ____________________ is a fixed gross amount of pay, equally distributed over periodic payments, without regard to the number of hours :   salary

3. ____________________ are earnings for routine or manual work, usually based on the number of hours :   Wages

4. A(n) ____________________ pay rate schedule is based on production :   piecework

5. ____________________ is a method of compensation primarily used to pay employees who sell a company’s goods or :   Commission

6. A(n) ____________________ is a commission paid in advance of sales and later deducted from the commissions :   drawing account

7. The ____________________ payroll tax has no annual maximum salary limit for the employee and the employer :   Medicare

8. The ____________________ payroll tax that is also known as the ____________________ tax has an annual maximum salary limit for both the employee and employer :   FICA, social security

9. FUTA is a federal tax that is paid by employers for each employee to provide ____________________ compensation to workers who have lost their :   unemployment

10. The ____________________ pay schedule requires that wages be paid every two weeks or twenty-six paychecks per :   biweekly

11. Walt’s monthly salary is $6, What would be his equivalent semimonthly salary?  a. $2,; b. $2,; c. $2,; d. $3,:   d

12. Saira’s weekly salary is $1, What would her gross salary be if it were on a semimonthly basis? (Round your answer to the nearest cent)  a. $2,; b. $50,; c. $2,; d. $2,:   a

13. Frank’s base pay rate is $ per hour, with overtime pay of time-and-a-half, and double-time for holidays. Calculate her gross pay if she worked holiday hours in addition to hours Monday through Saturday. (Round your answer to the nearest cent)  a. $; b. $; c. $; d. $:   d

14. Rai’s base pay rate is $ per hour, with overtime pay of time-and-a-half, and double-time for holidays. Calculate her gross pay if she worked 6 holiday hours in addition to hours Monday through Saturday. (Round your answer to the nearest cent)  a. $; b. $; c. $; d. $:   a

15. Kate’s base pay rate is $ per hour, with overtime paid at time-and-a-half. Find her gross pay if she worked hours Monday through Saturday. (Round your answer to the nearest cent)  a. $; b. $; c. $; d. $:   a

16. Lee Lu is paid $ per hour, with overtime pay of time-and-a-half for Saturday work and double time for Sunday. Calculate her gross pay if she worked 35 hours during the week, 5 hours Saturday and 3 hours Sunday. (Round your answer to the nearest cent)  a. $; b. $; c. $; d. $:   c

17. Wind Song is paid $ per hour, with overtime pay of time-and-a-half for Saturday work and double time for Sunday. Calculate her gross pay if she worked 38 hours during the week (Monday through Friday) and 8 hours Sunday. (Round your answer to the nearest cent)  a. $; b. $; c. $; d. $:   b

18. Workers who manufacture shirts are sometimes paid based on the number of shirts they produce. Compute Lyle’s gross pay if she made 380 shirts. The rate per shirt is given by the differential piecework schedule below:
Pay Level Items Produced Rate per Item1 1−187 $ Over 187 $; a. $2,; b. $2,; c. $2,; d. $2,:   d

19. Workers who manufacture belts are sometimes paid based on the number of belts they produce. Compute Ada’s gross pay if she made 754 belts. The rate per belt is given by the differential piecework schedule below:
Pay Level Items Produced Rate per Item1 1−240 $ Over 240 $; a. $1,; b. $3,; c. $2,; d. $4,:   b

20. Jessica has a job making baskets. Last week she made a total of 226 baskets. Calculate her gross pay if she is paid on the following differential piecework schedule:
Pay Level Items Produced Rate1 1−105 $ 106−255 $ Over 255 $; a. $1,; b. $1,; c. $1,; d. $2,:   c

21. The Monty Corporation has a staff of sales people who are paid a monthly salary of $1, plus an incremental commission based on the table below. If Sally sells $29,, what is her total gross pay for the month?
Level Sales Volume Commission Rate1 9,100−17,600 Over 17,600 9%  a. $3,; b. $3,; c. $4,; d. $4,:   b

22. As a sales person for Fresh Flowers, Carlos is paid an incremental commission based on the table below. If he sells $12,, what is his total gross pay?
Level Sales Volume Commission Rate1 1−5,700 5,701−9,900 Over 9,901 ; a. $; b. $; c. $; d. $:   b

23. Frank’s Factories has a staff of sales people like Anthony, who receives a monthly salary of $2, plus an incremental commission based on the table below. If he sells $27,, what is his total gross pay for the month?
Level Sales Volume Commission Rate1 8,201−15,000 Over 15,000 ; a. $3,; b. $1,; c. $3,; d. $:   a

24. Robert works for Southern Consulting as a sales executive. He is paid a monthly salary of $3, plus a straight commission of on all sales over $10, If he sells $15,, what is his total gross pay for the month?  a. $3,; b. $3,; c. $4,; d. $8,:   a

25. Carolyne is paid $1, biweekly. This year, to date, she has earned $25, What will be the total deduction for Social Security and Medicare taxes on her next paycheck? (Social Security tax is of gross wages up to $117,000. Medicare tax is of all gross wages.)  a. $; b. $; c. $; d. $:   c

26. What will be the total deduction for social security and Medicare taxes on Rony’s next semimonthly paycheck of $3,, if she has already earned $42, this year? (Social security tax is of gross wages up to $117,00. Medicare tax is of all gross wages.)  a. $; b. $; c. $; d. $:   b

27. Mary earned $41, for the past calendar year. How much did she pay for the year in social security and Medicare taxes? (Social Security Tax is of gross wages up to $117,000. Medicare Tax is of all gross wages.)  a. $2,; b. $3,; c. $3,; d. $3,:   c

28. Naomi received weekly wages of $1, She is married and is entitled to 7 withholding allowances. How much income tax will be withheld, based on the percentage method tables in Exhibits 9-1 and 9-2 from your text?  a. $0  b. $; c. $; d. $:   c

29. Find the amount of income tax withheld from Sun Jung’s monthly paycheck of $8, using the percentage method tables in Exhibits 9-1 and 9-2 from your text. Sun Jung is single and claims 2 withholding ; a. $1,; b. $1,; c. $1,; d. $1,:   c

30. Find the amount of income tax withheld from Karen’s semimonthly gross paycheck of $1, using the percentage method tables in Exhibits 9-1 and 9-2 from your text. Karen is married and claims 4 withholding ; a. $; b. $; c. $; d. $:   d

31. Cross receives a monthly paycheck from a bakery plant of $3, She is married and is entitled to 3 withholding allowances. How much is her taxable income? Use the percentage method tables in Exhibits 9-1 and 9-2 from your ; a. $2,; b. $3,; c. $3,; d. $3,:   a

32. Cazz receives a semimonthly paycheck from a jazz club of $4, He is married and is entitled to 1 withholding allowance. Using the percentage method, calculate the amount of income tax that should be withheld from his paycheck each pay period. Use tables in Exhibits 9-1 and 9-2 from your ; a. $; b. $; c. $; d. $:   c

33. Christopher receives gross monthly wages of $5, He is married and is entitled to 3 withholding allowances. How much income tax will be withheld, based on the percentage method tables in Exhibits 9-1 and 9-2 from your text?  a. $; b. $; c. $; d. $:   b

34. Manny is paid $2, on a monthly basis. He is single and is entitled to 1 withholding allowance. How much income, social security, and Medicare taxes will be withheld, based on the combined wage bracket tables in Exhibits 9-3 and 9-4 from your text?  a. $; b. $; c. $; d. $:   c

35. Penny is paid a gross wage of $2, on a monthly basis. She is single and is entitled to 2 withholding allowances. How much income tax, social security, and Medicare will be withheld based on the combined wage bracket tables in Exhibits 9-3 and 9-4 from your text?  a. $; b. $; c. $; d. $:   c

36. Family Flowers employs 17 people, of whom 14 earn gross pay of $ each and 3 earn gross pay of $ each on a weekly basis. What is the employer’s share of total social security and Medicare taxes for the first quarter of the year? (Social security tax is of wages up to $117,000. Medicare tax is of all wages.)  a. $; b. $; c. $; d. $11,:   d

37. Compute Austin’s total social security and Medicare taxes for the fourth quarter, if she is self-employed and earns $5, on a semimonthly basis. (For self-employed persons, social security tax is of wages up to $117,000, and Medicare tax is of all wages.)  a. $1,; b. $2,; c. $4,; d. $4,:   c

38. The weekly payroll of Abkar Hardware includes 19 employees who earn $ How much is the employer’s share of total social security and Medicare taxes for the first quarter of the year?  a. $; b. $5,; c. $; d. $10,:   b

39. Compute Darryl’s total social security and Medicare taxes for the third quarter, if she is self-employed and earns $1, on a weekly ; a. $2,; b. $1,; c. $1,; d. $1,:   a

40. The SUTA rate for Worldwide Industries is and its FUTA rate is less the SUTA credit. If its weekly payroll is $52, and none was for payments to employees in excess of the $7, wage base, then what are the total FUTA and SUTA taxes for the payroll?  a. $3,; b. $2,; c. $; d. $6,:   c

41. The SUTA rate for Westcoast Publishers is and its FUTA rate is less the SUTA credit. If its biweekly payroll was $32, for 47 employees and none was for payments to employees in excess of the $7, wage base, then what were the total FUTA and SUTA taxes for the payroll?  a. $1,; b. $2,; c. $2,; d. $1,:   b

42. The SUTA rate for LARVA Corporation is and its FUTA rate is less the SUTA credit. If its semimonthly GROSS payroll is $252, and none was for payments to employees in excess of the $7, wage base, then what are the total FUTA and SUTA taxes for the payroll?  a. $18,; b. $22,; c. $24,; d. $15,:   d

43. The last semimonthly payroll of Available Temp Services was $135, of gross wages for 113 employees. Of the total, none was for payments to employees in excess of the $7, wage base. What were the total FUTA and SUTA taxes for the payroll? The company’s SUTA rate is and its FUTA rate is less the SUTA ; a. $8,; b. $15,; c. $7,; d. $9,:   a

44. The last semimonthly payroll of Capital Construction was $77, of gross wages for 49 employees. The company pays of payroll for vacations and sick leave and $ per employee for health insurance. What percent of payroll is the total cost of fringe benefits? (Round your answer to the nearest tenth of a percent)  a. ; b. ; c. ; d. :   c

45. Seaside Hotels employs 64 workers with a gross weekly payroll of $41, Fringe benefits are $ per employee for dental insurance and $ per employee for discount club memberships. What percent of payroll is the total cost of fringe benefits? (Round your answer to the nearest tenth of a percent)  a. ; b. ; c. ; d. :   b

46. West-Coast Publishers employs 43 workers with a gross biweekly payroll of $47, Fringe benefits are $ per employee for life insurance and of payroll for a stock purchase plan. What is the total cost of fringe benefits?  a. $5,; b. $5,; c. $; d. $5,:   a

47. The last weekly payroll of Available Temp Services was $33, for 55 employees. The company pays of payroll for vacations and sick leave and $ per employee for health insurance. What percent of payroll is the total cost of fringe benefits? (Round your answer to the nearest tenth of a percent)  a. ; b. ; c. ; d. :   c

48. Capital Construction employs 79 workers with a gross weekly payroll of $35, Fringe benefits are $ per employee for dental insurance, $ per employee for discount club memberships and of payroll for a pension plan. What is the total cost of fringe benefits?  a. $5,; b. $4,; c. $3,; d. $2,:   a

49. Compute Lenny’s estimated tax payment for the third quarter. He is self-employed and he expects to earn $40, this year. His estimated income tax rate is 19%.  a. $3,; b. $7,; c. $2,; d. $3,:   d

50. Gus is the self-employed owner of Four Paws Pet Supply. His estimated annual earnings are $43, and he expects to pay 18% of this amount in income tax. What will be his quarterly estimated tax payment for the second quarter?  a. $7,; b. $3,; c. $1,; d. $2,:   b

51. Juanita is the self-employed owner of Juanita’s Linens. Her estimated annual earnings are $73,040 and she expects to pay 27% of this amount in income tax. What will be her quarterly estimated tax payment for the third quarter? (For self-employed persons, social security tax is of wages up to $106,800, and Medicare tax is of all wages.)  a. $2,; b. $4,; c. $7,; d. $:   c

52. Bono is the self-employed owner of JAB Consulting. Her estimated annual earnings are $68, and she expects to pay 22% of this amount in income tax. What will be her quarterly estimated tax payment for the second quarter? (For self-employed persons, social security tax is of wages up to $106,800, and Medicare tax is of all wages.)  a. $6,; b. $3,; c. $2,; d. $:   a

53. Scott Stewart is the self-employed owner of Stewart Software. His estimated annual earnings are $48, and he expects to pay 18% of this amount in income tax. What will be his quarterly estimated tax payment for the second quarter? (For self-employed persons, social security tax is of wages up to $106,800, and Medicare tax is of all wages.)  a. $; b. $2,; c. $3,; d. $1,:   c

54. Gina’s base pay rate is $ per hour, with overtime pay of time-and-a-half, and double-time for holidays. Calculate her gross pay if she worked holiday hours in addition to 39 hours Monday through Saturday. (Round your answer to the nearest cent)  a. $; b. $; c. $; d. $:   b

55. East Coast DVD employs 54 workers with a gross biweekly payroll of $94,126. Fringe benefits are $ per employee for life insurance and of payroll for a stock purchase plan. What is the total cost of fringe benefits?  a. $5,; b. $104,; c. $; d. $12,:   d

56. Workers who manufacture baseball caps are sometimes paid based on the number of baseball caps they produce. Compute Jillian’s gross pay if she made 359 belts. The rate per belt is given by the differential piecework schedule below:
Pay Level Items Produced Rate per Item1 1−125 $ Over 125 $; a. $1,; b. $3,; c. $2,; d. $1,:   a

57. The last semimonthly payroll of Garcia Carpentry was $84,248 of gross wages for 38 employees. The company pays of payroll for vacations and sick leave and $ per employee for health insurance. What percent of payroll is the total cost of fringe benefits? (Round your answer to the nearest tenth of a percent)  a. ; b. ; c. ; d. :   b

58. Wind Song is paid $ per hour, with overtime pay of time-and-a-half for Saturday work and double time for Sunday. Calculate her gross pay if she worked 33 hours during the week (Monday through Friday) and 10 hours Sunday. (Round your answer to the nearest cent)  a. $; b. $; c. $; d. $:   b

59. Mount Pleasant Hotels employs 114 workers with a gross weekly payroll of $91,898. Fringe benefits are $ per employee for dental insurance and $ per employee for discount club memberships. What percent of payroll is the total cost of fringe benefits? (Round your answer to the nearest tenth of a percent)  a. ; b. ; c. ; d. :   d

60. Calculate the gross earnings per pay period for the pay schedule, rounding to the nearest cent:
Annual Salary Monthly Semimonthly Biweekly Weekly $2, ANSWER:   $28,; 1,; 1,;

61. Calculate the gross earnings per pay period for the pay schedule, rounding to the nearest cent:
Annual Salary Monthly Semimonthly Biweekly Weekly$20, ANSWER:   $1,; ; ;

62. Calculate the gross earnings per pay period for the pay schedule, rounding to the nearest cent:
Annual Salary Monthly Semimonthly Biweekly Weekly $:   $28,; 2,; 1,; 1,

63. Calculate the gross earnings per pay period for the pay schedule, rounding to the nearest cent:
Annual Salary Monthly Semimonthly Biweekly Weekly$55, ANSWER:   $4,; 2,; 2,; 1,

64. Calculate the gross earnings per pay period for the pay schedule, rounding to the nearest cent:
Annual Salary Monthly Semimonthly Biweekly Weekly$86, ANSWER:   $7,; 3,; 3,; 1,

65. Calculate the gross earnings per pay period for the pay schedule, rounding to the nearest cent:
Annual Salary Monthly Semimonthly Biweekly Weekly $1, ANSWER:   $19,; ; ;

66. Calculate the gross earnings per pay period for the pay schedule, rounding to the nearest cent:
Annual Salary Monthly Semimonthly Biweekly Weekly $2, ANSWER:   $56,; 4,; 2,; 1,

67. Calculate the gross earnings per pay period for the pay schedule, rounding to the nearest cent:
Annual Salary Monthly Semimonthly Biweekly Weekly $ ANSWER:   $21,; 1,; ;

68. Calculate the gross earnings per pay period for the pay schedule, rounding to the nearest cent:
Annual Salary Monthly Semimonthly Biweekly Weekly $:   $37,; 3,; 1,; 1,

69. Complete the payroll record. The company pays overtime for all hours worked over 40 at the rate of time-and-a-half, rounding to the nearest cent:
Hourly Total Overtime Overtime TotalEmployee M T W T F S S Rate Hours Hours Pay PayLogan 5 9 8 7 9 0 4 $  Harris 9 9 8 9 9 0 0 $  Stearns 6 8 8 8 9 8 0 $  ANSWER:   Logan 42 2 $ $ 44 4 $ $ 47 7 $ $

 

Narrative 9-1
Workers are paid on a differential piecework schedule as follows:
Pay Level Units Produced Rate per Unit1 1−50 $ 51−100 $ 101−150 $ over 150 $

70. Refer to Narrative 9-1. Calculate the amount of last week’s total gross pay for the employees:
Employee Units Produced Total Gross PayCory, A. 62 ANSWER:   $

71. Refer to Narrative 9-1. Calculate the amount of last week’s total gross pay for the employees:
Employee Units Produced Total Gross PayCasey, E. 136 ANSWER:   $

72. Refer to Narrative 9-1. Calculate the amount of last week’s total gross pay for the employees:
Employee Units Produced Total Gross PayClark, N. 210 ANSWER:   $

73. Calculate the monthly social security and Medicare withholding for the employee, rounding to nearest cent (Social security tax is of wages up to $106,800. Medicare tax is of all wages):
Employee Year to Date Earnings Current Month Social Security MedicareDavis, C. $32,516 $3,514  ANSWER:   $; $

74. Calculate the monthly social security and Medicare withholding for the employee, rounding to nearest cent (Social security tax is of wages up to $106,800. Medicare tax is of all wages):
Employee Year to Date Earnings Current Month Social Security MedicareArthur, H. $59,610 $5,927  ANSWER:   $; $

75. Calculate the monthly social security and Medicare withholding for the employee, rounding to nearest cent (Social security tax is of wages up to $106,800. Medicare tax is of all wages):
Employee Year to Date Earnings Current Month Social Security MedicareAlwine, T. $123, $16,  ANSWER:   $; $

76. Use the combined wage bracket tables to complete the payroll roster:
Marital Withholding Pay Gross Income TaxEmployee Status Allowances Period Earnings WithholdingPurcell, S. S 2 Monthly $4,  ANSWER:   $1,

77. Use the combined wage bracket tables to complete the payroll roster:
Marital Withholding Pay Gross Income TaxEmployee Status Allowances Period Earnings WithholdingRoberts, J. M 4 Weekly $  ANSWER:   $

78. Use the combined wage bracket tables to complete the payroll roster:
Marital Withholding Pay Gross Income TaxEmployee Status Allowances Period Earnings WithholdingAnderson, J. S 5 Monthly $2,815  ANSWER:   $

79. Use the percentage method of income tax calculations to complete the payroll roster:
Marital Withholding Pay Gross Income TaxEmployee Status Allowances Period Earnings WithholdingBaker, D. M 2 Semimonthly $ ANSWER:   $0

80. Use the percentage method of income tax calculations to complete the payroll roster:
Marital Withholding Pay Gross Income TaxEmployee Status Allowances Period Earnings WithholdingEvans, F. S 0 Weekly $1,  ANSWER:   $

81. Use the percentage method of income tax calculations to complete the payroll roster:
Marital Withholding Pay Gross Income TaxEmployee Status Allowances Period Earnings WithholdingGrant, H. S 1 Monthly $3,  ANSWER:   $

82. Use the percentage method of income tax calculations to complete the payroll roster:
Marital Withholding Pay Gross Income TaxEmployee Status Allowances Period Earnings WithholdingJones, M. M 5 Biweekly $2,  ANSWER:   $

83. Ornell sells televisions for Bay City Electronics. He is on an incremental commission schedule of of sales up to $120,000 and on sales over $120,000. What was Ornell’s total gross pay for last month if his sales volume was $194,500?ANSWER:   $3,766

84. Jerome’s monthly salary is $4,302. What would be his equivalent biweekly salary? (Round to the nearest cent)ANSWER:   $1,

85. Lonnie Watkins has gross earnings of $1, semi-monthly. If his company switches pay schedules from semimonthly to biweekly, what are Lonnie’s new gross earnings per pay period? (Round to the nearest cent)ANSWER:   $1,

86. Kate’s monthly salary is $3, What would be her equivalent biweekly salary? (Round to the nearest cent)ANSWER:   $1,

87. Mari’s base pay rate is $ per hour, with over time paid at time-and-a-half. Find her gross pay if she worked 52 hours Monday through Saturday and 5 hours of over time on Sunday. (Round to the nearest cent)ANSWER:   $

88. Melissa Grossman is the manager of a video store and earns $ per hour with time-and-a-half for overtime and double-time on Sundays. What is Melissa’s total gross pay for last week if she worked 43 hours Monday through Saturday, plus a 5-hour shift on Sunday?ANSWER:   $

89. As a sales person for Copper Penny Amusements, Clyde receives a straight commission of If he sells $42,128, what is his total gross pay?ANSWER:   $3,

90. Brian Walker works for a company that manufactures electric switches. He is paid on a differential piecework schedule as follows: 1−50 switches, $ per switch; 51−100 switches, $ per switch; and over 100 switches, $ per switch. What is Brian’s total gross pay if he produced 167 switches this week?ANSWER:   $

91. As a sales person for Four Paws Pet Supply, Karen receives a straight commission of If she sells $23,, what is her total gross pay?ANSWER:   $1,

92. Frank McDonald sells computer systems for United Electronics. He is on an incremental commission schedule of of sales up to $150,000 and on sales over $150,000. What was Frank’s total gross pay for last month if his sales volume was $269,500?ANSWER:   $5,268

93. Thomas Getz is a salesman for Sharp Furniture Co. He is paid a straight commission with $1, drawing account. If he receives the draw at the beginning of the month and then sells $183, during the month, how much commission is owed to Thomas?ANSWER:   $4,

94. Barron Foster is a salesman for a new car dealer. He is paid straight commission with $1, drawing account. If he receives the draw at the beginning of the month and then sells $205, during the month, how much commission is owed to Barron?ANSWER:   $7,

95. Matthew Cone is a salesman for Ace Leasing. He earns a salary of $ per month, plus a commission of  on all sales over $10, If Matthew sold $28, last month, what was his total gross pay?ANSWER:   $1,

Narrative 9-2Use the information below to solve the following problems:
Tax Rate Wage BaseSocial security $106,800Medicare no limitFUTA .8% $7,000SUTA $7,000

96. Refer to Narrative 9-2. Edgar is paid $3, biweekly. So far this year he has earned $22, What will be the total deduction for social security and Medicare taxes on his next paycheck?ANSWER:   $

97. Refer to Narrative 9-2. Jenna Bernstein earns $2, per month. What are the withholdings for social security and Medicare for Jenna for the month of January? (round to the nearest cent)ANSWER:   $

98. Refer to Narrative 9-2. Karen Forstrom has biweekly gross earnings of $2, What are her total social security and Medicare tax withholdings for an entire year?ANSWER:   $5,

99. Refer to Narrative 9-2. Jane Loprest is self-employed with an annual salary of $49, In addition to the social security and Medicare tax, her estimated federal income tax rate is 14%. How much quarterly estimated tax must Jane send to the IRS each quarter?ANSWER:   $3,

100. Refer to Narrative 9-2. Ann Coulter started to work for the Laurie Co. in January of this year as an executive. Her salary is $13, per month. What will be the withholding for social security and Medicare for Ann for the month of May of this year?ANSWER:   $1,

101. Refer to Narrative 9-2. David Wheeler earns $3, per month. His Federal Income Tax withholding is $ In addition to social security and Medicare, David also pays state income tax,  for state disability insurance (both based on gross earnings), $ for union dues, and $ for term life insurance. What is David’s net take-home pay for January?ANSWER:   $2,

102. Refer to Narrative 9-2. A company has 22 employees, 15 with gross earnings of $ each per week and 7 with gross earnings of $ each per week. What are the employees’ share and the employer’s share of the social security and Medicare tax for the first quarter of the year?
a. Employees’ share?b. Employer’s share?ANSWER:   a. $8, $8,

 

103. Refer to Narrative 9-2. Mountain Vineyards employs 15 people who each earn $ on a weekly basis. What is the employer’s share of total social security and Medicare taxes for the first quarter of the year?ANSWER:   $12,

104. Refer to Narrative 9-2. Cindy Watson, a self-employed freelance writer, had total gross earnings of $61, last year. What was the amount of social security and Medicare taxes that Cindy was required to send to the IRS each quarter?ANSWER:   $2,

105. Refer to Narrative 9-2. Michael Johns worked part time last year as a clerk in a convenience store. His total gross earnings were $6,
a. How much SUTA tax must the store pay to the state for Michael?b. How much FUTA tax must the store pay for Michael?ANSWER:   a. $ $

 

106. Refer to Narrative 9-2. The SUTA rate for Montego Corporation is and its FUTA rate is less the SUTA credit. If its monthly payroll is $153, and none was for payments to employees in excess of the $7, wage base, then what are the total FUTA and SUTA taxes for the payroll?ANSWER:   $9,

107. Refer to Narrative 9-2. Jay Tile Works employs two installers. Rick earns $ per week and Stanley earns $ per week. How much FUTA and SUTA tax does Jay Tile Works owe for the first quarter of the year?ANSWER:   $1,

108. Refer to Narrative 9-2. Solomon Plastics employs 272 workers and has a gross payroll of $186, per week. Fringe benefits are 4 3/4% of gross payroll for sick days and maternity leaves, for health insurance, for the retirement fund, and $ per employee for a stock purchase plan.
a. What is the company’s weekly cost of fringe benefits?b. What percentage of the payroll does this represent? (Round to the nearest hundredth of a percent)ANSWER:   a. $38,

 

109. Refer to Narrative 9-2. Fringe benefit costs associated with the $32, weekly payroll for the 50 employees of Fontaine Factories are of payroll for vacations and sick leave and $ per employee for health insurance. What is the total cost of fringe benefits?ANSWER:   $7,

110. Refer to Narrative 9-2. Abraham Weiss is a self-employed computer consultant. His estimated annual earnings this year are $90, In addition to social security and Medicare tax, his federal income tax rate is 24%. How much quarterly estimated tax must Abraham send to the IRS in the fourth quarter?ANSWER:   $8,

111. Refer to Narrative 9-2. Sally is the self-employed owner of Tech Consulting. Her estimated annual earnings are $104, and she expects to pay 27% of this amount in income tax. What will be her quarterly estimated tax payment for the fourth quarter?ANSWER:   $11,

Narrative 9-3
Use Exhibit 9-1,9-2, 9-3, or 9-4 from your text to solve the following problems.
112. Refer to Narrative 9-3. Katie received semimonthly wages of $4, She is single and is entitled to three withholding allowances. Using the percentage method, how much income tax will be withheld?ANSWER:   $

113. Refer to Narrative 9-3. Using the percentage method to figure federal income tax, how much income tax should be withheld from the paycheck of a married employee earning $3, per month and claiming three withholding allowances? (Round to the nearest cent)ANSWER:   $

114. Refer to Narrative 9-3. Using the combined wage bracket tables, how much income tax, social security, and Medicare should be withheld from the weekly paycheck of a married employee earning $1, per week and claiming five withholding allowances?ANSWER:   $

115. Refer to Narrative 9-3. Allison Cutler is single, claims one withholding allowance, and earns $4, per month. Using the combined wage bracket tables calculate the amount of Allison’s paycheck after her employer withholds social security, Medicare, and income :   $1,

116. Refer to Narrative 9-3. Use the combined wage bracket tables to find the amount of income, social security, and Medicare taxes to be withheld from Maria’s monthly paycheck of $2, Maria is single and claims zero withholding :   $

117. Refer to Narrative 9-3. Use the combined wage bracket tables to find the amount of income, social security, and Medicare taxes to be withheld from Carolyn’s monthly paycheck of $3, Carolyn is single and claims one withholding :   $

118. Refer to Narrative 9-3. Use the combined wage tables to find the amount of income, social security, and Medical taxes to be withheld from Mari’s monthly paycheck of $5, Mari is single and claims three withholding :   $1,

119. Refer to Narrative 9-3. Use the combined wage tables to find the amount of income, social security, and Medical taxes to be withheld from Mark’s weekly paycheck of $1, Mark is married and claims three withholding :   $

120. Refer to Narrative 9-3. Use the combined wage tables to find the amount of income, social security, and Medical taxes to be withheld from Roger’s weekly paycheck of $ Roger is married and claims zero withholding :   $

121. Gross earnings refers to the amount of earnings on a paycheck after the payroll deductions have been ; a. True  b. FalseANSWER:   False

122. Net pay is the same as take-home ; a. True  b. FalseANSWER:   True

123. Biweekly checks occur twice a month, while semi-monthly checks occur every two ; a. True  b. FalseANSWER:   False

124. Weekly paycheck recipient will receive 56 paychecks per ; a. True  b. FalseANSWER:   False

;Salary is a set amount of pay for a specified period regardless of the hours worked.
Wages are earnings for routine or manual work that are based on the number of hours ; a. True  b. FalseANSWER:   True

126. According to current federal law, overtime is calculated on any hours worked over 8 hours in a ; a. True  b. FalseANSWER:   False

127. To calculate regular pay, use the formula:
Regular Pay =    a. True  b. FalseANSWER:   False

128. Jane receives a regular pay rate of $ per hour.    She receives overtime pay for any hours over 40 per week.
Jane worked the following hours:
Monday – 8 hours
Tuesday – hours
Wednesday – hours
Thursday – hours
Friday – 8 hours
Saturday – 6 hours
Based on the information, Jane did not work overtime and receives a gross paycheck of  $456.

a. True  b. FalseANSWER:   False

;Jane receives a regular pay rate of $ per hour.    She receives overtime pay for any hours over 40 per week.
Jane worked the following hours:
Monday – 8 hours
Tuesday – hours
Wednesday – hours
Thursday – hours
Friday – 8 hours
Saturday – 6 hours
Based on the information, only Jane’s Saturday hours count as overtime.   She receives 42 hours of regular pay and 6 hours of overtime.
Her gross pay is $
a. True  b. FalseANSWER:   False

130. Piecework is a pay rate schedule based on an employee’s production output, not on hours ; a. True  b. FalseANSWER:   True

131. Commission is a percentage method of compensation based on the number of sales the employee made in a period of ; a. True  b. FalseANSWER:   True

132. Kallen receives a base salary of $800 per month plus 5% on all sales over $15,000.    If Kallen sold $85,000 last month, his gross pay would be $4,300.

 

a. True  b. FalseANSWER:   True

133. A commission paid in advance of sales and later deducted from the commission earned is called a draw against the ; a. True  b. FalseANSWER:   False

134. The federal legislation enacted in 1937 during the Great Depression to provide retirement funds and hospital insurance for retired and disabled workers.  Today, it is divided into two categories, social security and Medicare.
The above legislation is called the Federal Insurance Contribution Act (FICA).  a. True  b. FalseANSWER:   True

135. The Old Age, Survivors, and Disability Insurance is also referred to as ; a. True  b. FalseANSWER:   False