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Problem #2 (6 points): Leslie's Fashion Co. hired two hourly employees, Elaine and George, to ramp up production of its new puffy shirt that is

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Problem #2 (6 points): Leslie's Fashion Co. hired two hourly employees, Elaine and George, to ramp up production of its new puffy shirt that is designed to be "like the pirates used to wear". Both employees earn overtime at the rate of 1.5 times the hourly rate for hours worked in excess of 40 per week. Assume the Social Security tax rate is 6% on the first $130,000 of wages and the Medicare tax rate is 1.5% on all earnings. Federal income tax withheld is $350 for Elaine and $300 for George. Use 6% for the unemployment tax rate for the first $7,000 of earnings per employee. The following information is for the first week of January 2020. Employee Hours Worked Wage Rate Per Hour Elaine 55 $35 George 49 $30 a. What is George and Elaine's gross pay? George:1,605 / Elaine: $2; 187.50 Gross Pay b. What is George and Elaine's net pay? c. What amount of payroll tax will Leslie's Fashion Co. pay for the first week of 2020 with respect to Elaine and George

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