Chapter 6 2 Barbara Smith is an employee of Allied Manufacturing Company

Solve the problem.

54)

Barbara Smith is an employee of Allied Manufacturing Company. She has an 8–hr workday and

each day is paid $0.60 for each unit produced or the hourly rate, whichever is greater. Her hourly

rate is $7.15 per hour. Last week she produced 90 units on Monday, 97 units on Tuesday, 82 units

on Wednesday, 112 units on Thursday, and 98 units on Friday. What were her gross earnings for

the week?

54)

A)

$296.60

B)

$307.60

C)

$298.60

D)

$285.60

Find the federal withholding tax for the employee. Use the wage bracket method.

55)

Employee Married? Allowances Earnings

Kilburg, B. yes 6$734.08 weekly

55)

A)

$15

B)

$13

C)

$14

D)

$12

Use the percentage method of withholding, a FICA rate of 6.2%, a Medicare rate of 1.45%, an SDI rate of 1%, and a state

withholding tax of 3.4%. One withholding allowance is $73.08 when paid weekly.

56)

Jessica Walker, physicist, earns $728 per week. She is married and claims 1 withholding allowance.

Her deductions are FICA, Medicare, federal withholding, state disability insurance, state

withholding, retirement contribution of $21.84, and a savings bond of $85. Find her net pay.

56)

A)

$475.29

B)

$533.43

C)

$460.63

D)

$560.29

Solve the problem.

57)

Ellen earns $12.50 per hour. One week she worked 21.75 hours. Find her gross pay for the week.

57)

A)

$271.89

B)

$271.88

C)

$271.98

D)

$271.78

Find the Social Security and Medicare taxes on the gross earnings. Assume a 6.2% FICA rate and a 1.45% Medicare rate.

Round to the nearest cent.

58)

$460.00

58)

A)

$2.85, $0.67

B)

$28.52, $6.67

C)

$285.20, $66.70

D)

$29.52, $7.67

Find the equivalent earnings.

59)

Ellen‘s yearly salary is $16,692. How much does she earn in a semimonthly pay period?

59)

A)

$695.50

B)

$642.00

C)

$1391.00

D)

$321.00

Solve the problem.

60)

Allied Industries pays at the time–and–a–half rate for all time worked over 8 hours in any one day

no matter how many hours are worked in a week. Ken Warner, an employee of Allied Industries,

makes $12.30 an hour as his regular rate of pay. Last week he worked 14 hours on Monday, 5.5

hours on Thursday, and 8.75 hours on Friday. What were his gross earnings for the week?

60)

A)

$388.99

B)

$402.54

C)

$353.97

D)

$397.70

Calculate the total amount due to the IRS from the firm.

61)

Casper College collected $2693.43 FICA, $629.91 medicare, and $3219.08 federal withholding tax

from employees.

61)

A)

$9865.76

B)

$9235.85

C)

$7172.33

D)

$6542.42

Find the Social Security tax and Medicare tax on the annual gross income of a self–employed individual. For a

self–employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.

62)

Drew Laughlin, attorney, earned $61,347.57

62)

A)

$3803.55, $1779.08

B)

$3803.55, $889.54

C)

$7607.10, $1779.08

D)

$7507.10, $1679.08

Solve the problem.

63)

Find the gross earnings.

Units Produced

Monday: 73

Tuesday: 80

Rate per unit: $0.78

63)

A)

$119.34

B)

$134.64

C)

$117.78

D)

$120.90

Use the percentage method of withholding to find the federal withholding tax, a 6.2% FICA rate to find the FICA tax, and

1.45% to find the Medicare tax. Then find the net pay for the employee. Assume that the employee has not earned over

$115,000 so far this year.

24

64)

Karen Smith has gross earnings of $7512.15 monthly. She is single and has 3 withholding

allowances.

64)

A)

$5672.53

B)

$6937.47

C)

$8202.41

D)

$6247.21

Solve the problem.

65)

Chuck is paid $12.16 per hour for a 40–hour work week. One week he worked 54.25 hours. He is

paid time–and–a–half for overtime. What is Chuck‘s overtime pay for the week?

65)

A)

$746.32

B)

$659.68

C)

$194.66

D)

$259.92

D

Find the gross earnings for the employee.

66)

Westinghouse Paving pays its salespeople the following commissions.

7% of all sales

7.75% of all sales over $5500

Employee Total Sales

Goldberg, R. $10,200

66)

A)

$1078.25

B)

$749.25

C)

$1504.50

D)

$3642.50

A

Find the Social Security tax and Medicare tax on the annual gross income of a self–employed individual. For a

self–employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.

67)

Roberta Beltman, freelance photographer, earned $28,447.17

67)

A)

$1763.72, $412.48

B)

$3427.45, $724.97

C)

$1763.72, $824.97

D)

$3527.45, $824.97

D

A

Find the hours, rate, or earnings as specified.

68)

Marquez –11 8 8 8 8 9 12

$15.89 $23.84

Find the gross earnings for the week. Overtime hours are any hours over 40.

68)

A)

$921.68

B)

$1239.68

C)

$1144.28

D)

$826.28

Find the equivalent earnings.

69)

Chuck earns $16,172 a year. How much does he earn in a month?

69)

A)

$1617.20

B)

$311.00

C)

$1347.67

D)

$673.83

Find the hours, rate, or earnings as specified.

70)

Fawley –8.25 –10 10.5 10 9.75 ? ?

$10.64 ?

Find the number of regular hours, overtime hours (over 40), and overtime rate (time and a half).

70)

A)

48.5, 0, $15.96

B)

38.75, 9.75, $21.28

C)

40, 8.5, $15.96

D)

40, 8.5, $21.28

Find the equivalent earnings.

71)

Anita earns $356 a week. What is her yearly salary?

71)

A)

$18,512

B)

$17,800

C)

$3560

D)

$1542.67

Find the hours, rate, or earnings as specified.

72)

Healy –77.5 67.5 11.5 87.5

$17.13 $25.70

Find the gross earnings for the week. Overtime hours are any hours over 40.

72)

A)

$813.68

B)

$877.95

C)

$1220.75

D)

$1156.48

Solve the problem. Use a FICA rate of 6.2%, a Medicare rate of 1.45%, and an SDI rate of 1%. Assume the person’s

earnings will not exceed $31,800 for the year. Round to the nearest cent if needed.

73)

Lily Adams is paid 7% commission on sales. During a recent week, she had sales of $8745.47 and

returns of $168.43. Find her Social Security tax, Medicare tax, and SDI deduction for the week.

73)

A)

$36.79, $8.60, $5.93

B)

$37.96, $8.88, $6.12

C)

$37.22, $8.71, $6.00

D)

$38.69, $6.12, $6.24

Find the equivalent earnings.

74)

Keith earns $291 a week, but is paid semimonthly. How much is he paid at the end of a pay period?

74)

A)

$630.50

B)

$1261.00

C)

$15,132.00

D)

$582.00

Solve the problem.

75)

Suppose parts packers are paid as follows:

1–75 parts packed $1.00 each

76–125 parts packed $1.75 each

126 or more parts packed $2.25 each

If Sam packs 164 parts, what are his gross earnings?

75)

A)

$249.50

B)

$287.00

C)

$212.75

D)

$250.25

Use the state income tax rate given to find the state withholding tax for the following employee. Round to the nearest

cent.

76)

Employee

Gross Weekly

Earnings

State Income

Tax Rate

Deschamps, I. $1965.71 6.8%

76)

A)

$2.01

B)

$133.67

C)

$13,366.83

D)

$1336.68

Solve the problem.

77)

Acme Industries pays at the time–and–a–half rate for all time worked over 8 hours in any one day

no matter how many hours are worked in a week. Susan Jones is an employee of Acme Industries.

Last week she worked 10 hours on Monday, 6 hours on Tuesday, and 9 hours on Friday. Her gross

earnings for the week were $277.34. What is her regular rate of pay?

77)

A)

$12.33

B)

$14.22

C)

$9.40

D)

$10.47

78)

Stephen Rodrigues assembles and finishes wood products. He is paid $1.70 for a shelf, $0.95 for a

picture frame, and $2.20 for a planter. One week he completed 45 shelves, 72 picture frames, and 33

planters. Find his gross earnings.

78)

A)

$727.50

B)

$223.50

C)

$252.75

D)

$217.50

Find the weekly gross earnings. Overtime is paid at the time–and–a–half rate for hours over 40 per week.

79)

Employee Weekly Salary Hours Worked Gross Earnings

William $360.00 50

79)

A)

$522.00

B)

$440.00

C)

$550.00

D)

$495.00

Find the Social Security tax (6.2%), Medicare tax (1.45%), and state disability insurance deduction (1%) for the employee.

Assume the employee is under the FICA and SDI maximums at the end of the current pay period and assume that

time–and–a–half is paid for any overtime in a 40–hour week. Round to the nearest cent if needed.

80)

Hours Reg FICA Medicare SDI

Employee Worked Rate Tax Tax Tax

Arnold, N. 44.0 $8.60

80)

A)

$23.46, $5.49, $3.78

B)

$35.19, $8.23, $5.68

C)

$21.33, $4.99, $3.44

D)

$24.53, $5.74, $3.96

81)

Hours Reg FICA Medicare SDI

Employee Worked Rate Tax Tax Tax

Bush, H. 43 $8.60

81)

A)

$22.93, $5.36, $3.70

B)

$34.39, $8.04, $5.55

C)

$21.33, $4.99, $3.44

D)

$23.73, $5.55, $3.83

Find the gross earnings. Use the overtime premium method. Overtime is paid at time–and–a–half for all hours over 40.

82)

Anita –8.5 7.25 8 7 11.75 –

$8.85

82)

A)

$387.19

B)

$376.13

C)

$564.19

D)

$385.19

Calculate the total amount due to the IRS from the firm.

83)

Computer Solutions collected $3176.53 FICA, $742.90 medicare, and $2638.57 federal withholding

tax from employees.

83)

A)

$6558.00

B)

$7300.90

C)

$10,477.43

D)

$9734.53

Find the Social Security tax for the current pay period. Assume a 6.2% FICA rate up to a maximum of $115,000.

84)

Gross Earnings This Year: $113,134.08

Current Period Earnings: $3435.32

84)

A)

$212.99

B)

$97.30

C)

$115.69

D)

$109.49

Solve the problem.

85)

Find the gross earnings.

Units Produced

Monday: 72

Tuesday: 96

Wednesday: 113

Thursday: 103

Friday: 129

Rate per unit: $0.72

85)

A)

$369.36

B)

$276.48

C)

$368.64

D)

$370.08

Find the Social Security tax for the current pay period. Assume a 6.2% FICA rate up to a maximum of $115,000.

86)

Gross Earnings This Year: $109,431.86

Current Period Earnings: $6668.73

86)

A)

$345.22

B)

$68.24

C)

$413.46

D)

$339.02

Solve the problem.

87)

Suppose eggplant pickers are paid as follows:

1–200 eggplants picked $0.11 each

201–350 eggplants picked $0.15 each

351 or more eggplants picked $0.18 each

If Rachel picks 370 eggplants, what are her gross earnings?

87)

A)

$66.60

B)

$40.70

C)

$48.10

D)

$42.10

Find the Social Security tax (6.2%), Medicare tax (1.45%), and state disability insurance deduction (1%) for the employee.

Assume the employee is under the FICA and SDI maximums at the end of the current pay period and assume that

time–and–a–half is paid for any overtime in a 40–hour week. Round to the nearest cent if needed.

88)

Hours Reg FICA Medicare SDI

Employee Worked Rate Tax Tax Tax

Wilson, M. 36.9 $6.70

88)

A)

$17.80, $6.06, $4.94

B)

$3.32, $0.78, $0.54

C)

$15.33, $3.58, $2.47

D)

$22.99, $5.38, $3.71

Solve the problem.

89)

Suppose assembly line workers are paid as follows:

1–75 items assembled $0.50 each

76–125 items assembled $1.25 each

126 or more items assembled $1.75 each

If Jared assembles 113 items, what are his gross earnings?

89)

A)

$56.50

B)

$141.25

C)

$104.00

D)

$85.00

Find the Social Security tax and Medicare tax on the annual gross income of a self–employed individual. For a

self–employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.

90)

Frank Weller, surveyor, earned $29,114.84

90)

A)

$1805.12, $422.17

B)

$3510.24, $744.33

C)

$3610.24, $844.33

D)

$1805.12, $844.33

Solve the problem.

91)

Kathy‘s regular hourly rate is $13.48 per hour. She is paid time–and–a–half for overtime work.

What is Kathy‘s overtime rate?

91)

A)

$6.74

B)

$14.98

C)

$16.18

D)

$20.22

Find the weekly gross earnings. Overtime is paid at the time–and–a–half rate for hours over 40 per week.

92)

Employee Weekly Salary Hours Worked Gross Earnings

Tamara $700.00 44

92)

A)

$851.00

B)

$857.50

C)

$805.00

D)

$713.00

Find the hours, rate, or earnings as specified.

93)

Spaks –5 5 5.5 9.5 12 –? ?

$15.80 ?

Find the number of regular hours, overtime hours (over 8 in a day), and overtime rate (time and a

half).

93)

A)

37, 0, $23.70

B)

32, 5, $31.60

C)

31.5, 5.5, $31.60

D)

31.5, 5.5, $23.70

Find the weekly gross earnings. Overtime is paid at the time–and–a–half rate for hours over 40 per week.

94)

Employee Weekly Salary Hours Worked Gross Earnings

Barbara $580.00 44

94)

A)

$598.00

B)

$690.00

C)

$667.00

D)

$710.50

Solve the problem.

95)

An entomologist pays Fred $0.47 for each butterfly he brings in. Find Fred’s gross earnings if he

brings in 88 butterflies.

95)

A)

$45.12

B)

$37.60

C)

$41.36

D)

$88.47

Find the Social Security tax for the current pay period. Assume a 6.2% FICA rate up to a maximum of $115,000.

96)

Gross Earnings This Year: $112,438.85

Current Period Earnings: $3797.42

96)

A)

$235.44

B)

$76.65

C)

$158.79

D)

$152.59

Find the gross earnings. Use the overtime premium method. Overtime is paid at time–and–a–half for all hours over 40.

97)

Anita –8 9 8 9 7 –

$9.00

97)

A)

$369.00

B)

$371.50

C)

$553.50

D)

$373.50

Find the Social Security tax and Medicare tax on the annual gross income of a self–employed individual. For a

self–employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.

98)

John Rosar, framer, earned $33,067.28

98)

A)

$4000.34, $858.95

B)

$2050.17, $958.95

C)

$4100.34, $958.95

D)

$2050.17, $479.48

Find the Social Security and Medicare taxes on the gross earnings. Assume a 6.2% FICA rate and a 1.45% Medicare rate.

Round to the nearest cent.

99)

$730.20

99)

A)

$45.27, $10.59

B)

$452.70, $105.90

C)

$4.53, $1.06

D)

$46.27, $11.59

Find the federal withholding tax for the employee. Use the wage bracket method.

100)

Employee Married? Allowances Earnings

Bagherian, S. yes 0$542.27 weekly

100)

A)

$43

B)

$39

C)

$40

D)

$42

Find the gross earnings for the employee.

101)

Westinghouse Paving pays its salespeople the following commissions.

7% of all sales

5.75% of all sales over $5500

Employee Total Sales

Long, J. $13,000

101)

A)

$1657.50

B)

$816.25

C)

$81,625.00

D)

$1341.25

Find the federal withholding tax for the employee. Use the wage bracket method.

102)

Employee Married? Allowances Earnings

Gaylord, B. yes 2$684.96 weekly

102)

A)

$41

B)

$42

C)

$39

D)

$38

Motorville Auto Parts pays salespeople as follows: $488 per week plus a commission of 1.1% on sales above $15,000

through $25,000 with 1.4% paid on sales in excess of $25,000. Find the gross earnings of the salesperson. (No commission

is paid on the first $15,000 of sales.)

103)

Employee Total Sales

Limon, B. $26,200

103)

A)

$611.20

B)

$766.00

C)

$614.80

D)

$126.80

Find the Social Security tax for the current pay period. Assume a 6.2% FICA rate up to a maximum of $115,000.

104)

Gross Earnings This Year: $108,217.74

Current Period Earnings: $4008.91

104)

A)

$258.55

B)

$13,590.95

C)

$248.55

D)

$420.50

Find the gross earnings for the employee.

105)

Westinghouse Paving pays its salespeople the following commissions.

10% of all sales

6% of all sales over $6500

Employee Total Sales

Fletcher, S. $13,060

105)

A)

$393.60

B)

$1306.00

C)

$1699.60

D)

$2089.60

Solve the problem. Use a FICA rate of 6.2%, a Medicare rate of 1.45%, and an SDI rate of 1%. Assume the person’s

earnings will not exceed $31,800 for the year. Round to the nearest cent if needed.

106)

Todd Bennett worked 45.5 hours last week at Eck Builders, a construction company. He is paid $

10.40 per hour, plus time–and–a–half for overtime. Find his Social Security tax and Medicare tax

for the week.

106)

A)

$44.01, $10.29

B)

$31.11, $7.28

C)

$25.79, $6.03

D)

$29.34, $6.86

Answer Key

Testname: C6

Answer Key

Testname: C6

Answer Key

Testname: C6