On August 3, Hunt filed an amended Form W-4 to show a decrease in the number of
allowances claimed. Hunts employer must put the new withholding allowance
certificate into effect before the next weekly payday on August 5.
If an employer pays unemployment taxes to two states, it will have the same SUTA tax
rate in both states.
Employees paid biweekly receive their remuneration every two weeks.
A college may employ its own full-time students at 85 percent of the minimum wage.
NOTE: In this chapter and in all succeeding work throughout the course, unless
instructed otherwise, use the following rates, ceiling, and maximum taxes.
For rounding rules refer to page 2-33.
*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to
self-employed. During 20–, Garr was paid a weekly salary of $2,350. The amount of
FICA to be withheld from the following payments?
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. Elder is
paid a monthly salary of $2,250. Overtime is paid for hours beyond 40 in each
workweek. One week, Elder works 7 hours overtime.
Every state allows employers to make e-payment options as a condition of employment.
In computing their own FICA taxes, employers may exclude the total amount of tips
reported to them by their tipped employees.
Title VII of the Civil Rights Act protects all employees from arbitrary dismissal.
Under the federal income tax withholding law, income taxes are not withheld from the
value of meals that employers furnish workers on the employers premises for the
employers convenience.
In the adjusting entry to accrue wages at the end of the accounting period, there is no
need to credit any tax withholding accounts.
If an employers quarterly tax liability is $525, it must be paid on or before the last day
of the month following the end of the quarter.
The Social Security Act requires workers to obtain a new account number each time
they change jobs.
The payroll register is a separate payroll record that is kept on each employee.
The payments to a cook employed by a college fraternity are excluded from federal
income tax withholding.
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. Carolyn Clark, a full-time student at Atlanta State University, works at
the Barclay Dress Shop.