Question 5 of 6

Question 5 of 6 Natalie is considering hiring two permanent employees who are paid on an hourly basis plus time-and-a-half for -/16.7 all hours worked in excess of 40 hours per week. She is curious as to how this would affect her compam/s financial position. She has created some hypothetical payroll data which are presented below. Federal Income Tax Employee B. Borke E. Clarke Hours Worked 40 50 Hourly Rate $12 12 Cumulative Prior Earnings $8,256 8,944 United Fund $8 10 Borke and Clarke are each married and they claim 1 and 2 withholding allowances, respectively. The 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages. State income taxes are 4%. Prepare a payroll register for the hypothetical weekly payroll. Use the tax withholding table in Illustration 13.8 in the text for federal income tax withholdings. Since both employees have exceeded the $7,000 threshold for unemployment, no additional unemployment taxes are to be accrued or paid. (Round answers to 2 decimal places, e.g. 15.25.)