Jennifer Brunner works 40 hours per week as a chef's assistant. At the rate of $7.70 per hour, what are her gross weekly earnings (in $)?

Bob Farrell works for a company that manufactures small appliances. Bob is paid $2.00 for each toaster, $4.60 for each microwave oven, and $1.55 for each food blender he assembles. If he produced 58 toasters, 38 microwave ovens, and 75 blenders, what were his total weekly gross earnings (in $)?

Jerry King is a server in a restaurant that pays a salary of $28 per day. He also averages tips of 18% of his total gross food orders. Last week he worked 6 days and had total food orders of $2,963.50. What was his total gross pay for the week (in $)?

Solve the problem using 6.2%, up to $128,400 for Social Security tax and using 1.45%, no wage limit, for Medicare tax.

Kristy Dunaway has biweekly gross earnings of $1,450. What are her total Social Security and Medicare tax withholdings (in $) for a whole year?

Social Security

Medicare

Use the combined wage bracket:

How much combined tax (in $) should be withheld from the paycheck of a single employee earning $3,345 per month and claiming zero withholding allowances?

Lee Sutherlin is a self-employed electrical consultant. He estimates his annual net earnings at $39,700. How much Social Security and Medicare must he pay (in $) this year?

Social Security

Medicare

 An appliance company has three installers. Larry earns $325 per week, Curly earns $420 per week, and Moe earns $555 per week. The company's SUTA rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings.

(a) How much SUTA and FUTA tax (in $) does the company owe for the first quarter of the year?

total SUTA tax

total FUTA tax

 

(b) How much SUTA and FUTA tax (in $) does the company owe for the second quarter of the year?

total SUTA tax

total FUTA tax 

Suppose you are the human resource manager for a cellular phone company with 600 employees. Top management has asked you to implement three additional fringe benefits that were negotiated with employee representatives and agreed upon by a majority of the employees. These include group term life insurance, a group legal services plan, and a wellness center. The life insurance is estimated to cost $390 per employee per quarter. The legal plan will cost $364 semiannually per employee. The company will contribute 40% to the life insurance premium and 75% to the cost of the legal services plan. The employees will pay the balance through payroll deductions from their biweekly paychecks. In addition, they will be charged 14% of their gross earnings per paycheck for maintaining the wellness center. The company will pay the initial cost of $800,000 to build the center. This expense will be spread over 5 years.

(a) What total amount should be deducted per paycheck for these new fringe benefits for an employee earning $93,600 per year?

(b) What is the total annual cost of the new fringe benefits to the company?