NOTE: In all problems, unless instructed otherwise, compute the hourly and overtime
rates as follows:
1) Carry the hourly rate and the overtime rate to 3 decimal places and then round off to
2 decimal places (round the hourly rate to 2 decimal places before multiplying by one
and one-half to determine the overtime rate).
2) If the third decimal place is 5 or more, round to the next higher cent.
3) If the third decimal place is less than 5, drop the third decimal place. Also, use the
minimum hourly wage of $7.25 in solving these problems and all that follow. Gorman
is paid $10.50 per hour for a 35-hour workweek. This past week, he worked an extra 10
hours on a job at a pay rate of $13.00 per hour.
Form W-3 is filed with the Social Security Administration when transmitting
information returns on Forms W-2.
If a business does not meet the enterprise coverage test, none of its workers qualify for
individual employee coverage.
One of the tests to be met for the white-collar exemption for an executive is to be paid a
salary of at least $455 per week.
The Equal Pay Act stipulates that there cannot be any wage differentials between the
sexes.
The FLSA requires that employees be given the day off on all Monday holidays or be
paid time and one-half for those Mondays.
FICA does not consider the first six months of sick pay as taxable wages.
Under no conditions may children under age 16 be employed in food service
establishments.
The special withholding allowance may be claimed only by those employees who do
not itemize deductions on their income tax returns.
Each payday, the total of net pays that the employer incurs is the wage expense that
must be debited.
FUTA Taxes Payable is an expense account in which are recorded the employers federal
unemployment taxes.
All employers can grant compensatory time off to employees in place of overtime pay.
An employee submits an invalid Form W-4 to the employer and does not replace it with
a valid form. The employer should withhold federal income taxes at the rate for a single
person claiming no exemptions.
In order to prepare Forms W-2, an employer would utilize the employees earnings
record.
On Form 941, the employer does not show the date of each tax deposit during the
quarter.
One of the provisions of coverage of the Civil Rights Act is that the employer must
have 15 or more workers.
The amount of federal income taxes to be withheld is determined after subtracting from
the employees gross wages any local and state taxes.
NOTE: In all problems, unless instructed otherwise, compute the hourly and overtime
rates as follows:
1) Carry the hourly rate and the overtime rate to 3 decimal places and then round off to
2 decimal places (round the hourly rate to 2 decimal places before multiplying by one
and one-half to determine the overtime rate).
2) If the third decimal place is 5 or more, round to the next higher cent.
3) If the third decimal place is less than 5, drop the third decimal place. Also, use the
minimum hourly wage of $7.25 in solving these problems and all that follow. Annette
Henri is paid an hourly wage of $10.90 for a 32-hour workweek of 4 days, 8 hours
daily. For any work on the fifth day and on Saturdays, she is paid one and one-half
times her regular hourly rate. During a certain week, in addition to her regular 32 hours,
Henri worked 6 hours on the fifth day and 5 hours on Saturday.
In its definition of employee, FICA clearly distinguishes between classes or grades of
employees.
If employees must contribute to the state unemployment fund, this deduction should be
shown in the payroll tax entry.