Payroll Records for Selected Employees of Tomco Industries for the Forty-Sixth

question 12

Essay

Payroll records for selected employees of Tomco Industries for the forty-sixth week of the year are as follows: Employees are paid time-and-a-half for overtime.
Employer payroll tax rates are as follows:
FICA: 8% of first $100,000 of salary or wages
FUTA: 1% of first $8,000 of salary or wages
SUTA: 4% of first $8,000 of salary or wages
Calculate:
(a) Total gross payroll for the selected employees.
(b) Total employer payroll taxes for the selected employees.

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Definitions:

Supply Curve

A graphic representation showing the relationship between the price of a good or service and the quantity supplied for a given period.

Exit the Industry

The process by which a business ceases operations in a particular market or industry, usually due to economic pressures or lack of profitability.

Zero Economic Profit

A situation in which a firm's total revenues equal its total costs, earning a normal profit but no economic profit.

Perfectly Competitive

A market structure characterized by many sellers, homogeneous products, and free entry and exit, leading to price determination by supply and demand.