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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, 5.4% 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.
Good Faith
Acting with honest intentions without seeking to take unfair advantage of another.
Intentional Torts
Intentional torts are wrongful acts done on purpose to harm another person, as opposed to accidentally, and can lead to civil liability.
Partnership
A legal form of business operation between two or more individuals who share management and profits. The specific terms are detailed in a partnership agreement.
Silent Partners
Investors in a partnership who contribute financially but do not participate in management or day-to-day operations of the business.
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