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
Step by Step Answer:
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds