Question
Part A: Mike Webster worked all the year at Cisco Enterprises on an annual salary of $84,000 plus an annual bonus equal to 10% of
Part A: Mike Webster worked all the year at Cisco Enterprises on an annual salary of $84,000 plus an annual bonus equal to 10% of his annual salary. Annual income tax withheld from Mikes salary was $21,000 and $2,100 for the bonus. Additional information: Mike authorised his employer to deduct $30 per month for life insurance. Cisco Enterprises provides Mike with health insurance at a monthly amount of $80. Cisco Enterprises provides Mike with superannuation at a monthly amount of $770. Cisco Enterprises incurs payroll tax which is calculated at 4% of total payroll. Required: (a) Calculate Mikes annual gross pay and net (take-home) pay. (4 marks) Details Amount Amount $ $ (b) Calculate Cisco Enterprises total annual payroll costs. (4 marks) Details Amount Amount $ $
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