Peter Perry Is Paid $12 Per Hour,plus Double-Time for Hours

question 193

Essay

Peter Perry is paid $12 per hour,plus double-time for hours worked on weekends.During the two-week period ending March 5,Perry worked 70 hours on weekdays and 8 hours on weekends.Social security taxes are 6.2 percent,Medicare taxes are 1.45 percent,$130 is withheld for federal taxes,$36 is withheld for state income taxes,and $48 is withheld for charities.In addition,Perry's employer must pay social security taxes of 6.2 percent,Medicare taxes of 1.45 percent,federal unemployment taxes of .8 percent,and state unemployment taxes of 5.4 percent.Calculate (a)Perry's gross earnings,(b)Perry's net pay,(c)the employer's payroll taxes expense,and (d)the total cost of employing Perry for the two-week period.Round all amounts to the nearest penny.

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Definitions:

Liquidated Debt

A fixed and settled debt amount that is acknowledged by both the debtor and the creditor.

Preexisting Duty

A legal principle that states a promise to do something that one is already legally obligated to do is not sufficient consideration for a new contract.

Unilateral Contract

A promise made by one party in exchange for the performance of a task or action by another party.

Past Consideration

A benefit already provided or an action already performed, which cannot legally constitute consideration for a current contract.