An Employee Receives an Hourly Rate of $45, with Time

question 77

Essay

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%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% 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.
(c) The employee's cumulative earnings for the year prior to this week equal $118,700.

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Definitions:

Mathematical Formulas

Prescribed sets of operations that are used to solve mathematical problems and express relationships between quantities.

Populations

In statistics, a population encompasses all members or elements of a specified group being studied, from which samples may be drawn for statistical analysis.

Normal Distribution

Distribution based on a population of an infinite number of scores calculated from a mathematical formula.

Mathematical Formulas

Prescribed sets of mathematical relationships and operations used to solve problems or describe phenomena.