An Employee Earns $16 Per Hour

question 103

Short Answer

An employee earns $16 per hour. He worked 45 hours the last week of January (assuming time and a half for overtime).
Calculate the total amount of employee deductions.
The business is involved in interstate commerce.
Federal Income Tax rate = 20%
State Income Tax rate = 5%
FICA rate OASDI = 6.2% and Medicare = 1.45%
FUTA rate = .8%
SUTA rate = 5.6%
$ ________

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Definitions:

Knights of Labor

An influential labor organization in the late 19th century in the United States that aimed to protect and fight for workers' rights.

Skilled Craftsmen

Workers who have specialized in a particular trade or craft through extensive training and experience.

Industrial Workers

Individuals who are employed in sectors related to manufacturing, construction, and production, often involving manual labor.

American Federation of Labor

A prominent federation of labor unions in the United States, founded in 1886, which aimed to organize workers in skilled trades.