The following information is for employee Robert Ellis for the week ended March 15. Total hours worked:

Question:

The following information is for employee Robert Ellis for the week ended March 15.

Total hours worked: 48

Rate: $15 per hour, with double time for all hours in excess of 40

Federal income tax withheld: $200

United Fund deduction: $50

Cumulative earnings prior to current week: $6,400

Tax rates:

Social security: 6% on maximum earnings of $100,000

Medicare tax: 1.5% on all earnings; on both employer and employee

State unemployment: 3.4% on maximum earnings of $7,000, on employer

Federal unemployment: 0.8% on maximum earnings of $7,000, on employer.

Determine

(1) Total earnings,

(2) Total deductions,

(3) Cash paid.

Determine each of the employer’s payroll taxes related to the earnings of Robert Ellis for the week ended March 15

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Related Book For  book-img-for-question

Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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