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For multiple choice questions 1 through 3, use the following tax rates: Social Security tax 6.0% Medicare tax 1.5% State unemployment compensation tax 5.4%
For multiple choice questions 1 through 3, use the following tax rates: Social Security tax 6.0% Medicare tax 1.5% State unemployment compensation tax 5.4% Also assume for multiple choice questions 1 through 3: Federal unemployment compensation tax .8% Employee Jon Doe's gross weekly earnings $10,000. Federal income tax withheld = $1,000 = Employer is Conrad Company. Jon Doe is the only employee. CIRCLE THE CORRECT ANSWER. (8 points) 1. What is Jon Doe's net pay? a. $10,000 b. $8,630 c. $8,250 d. $7,630 2. What is the total amount of the employer payroll taxes? a. $620 b. $750 c. $1,370 d. $2,370 3. What is the total cost to Conrad Company of employing Jon Doe this week? a. $12,370 b. $11,370 c. $11,000 d. $10,000 4. Employee Mary Ryan earns $20 per hour. Mary Ryan worked 43 hours this week. What is the minimum amount she must be paid this week? In order to comply with the law? a. $1,290 b. $920 c. $890 d. $860
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