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| Employees at BJ’s Grill are paid 1.5 times their regular pay rate for each hour worked in excess of 40 hours per week. The FICA tax rate is 7.65% of the first $100,000 of gross earnings. The state unemployment tax rate is .8% of the first $7,000 of wages per employee for the year and the federal unemployment tax rate is 6.2% per employee. | |||||||
| 1 | BJ hired an accountant to prepare the company’s business’ tax filings. The accountant charged BJ’s Grill $1,500 for his services. Earlier in the year, BJ’s paid this accountant $2,000 for accounting advice incorporation of the business. The total amount of federal unemployment tax that BJ’s will owe as a result of hiring the accountant during the year is: | ||||||
| $____________ | |||||||
| 2 | Homer Bates is paid weekly and worked nine hours per day Monday through Friday. Assuming his regular wage rate is $11.00 per hour, how much is his gross pay for the week? | ||||||
| $____________ | |||||||
| 3 | Ron Davis worked five eight-hour days for the week and is paid a regular wage rate of $18.00 per hour. His year-to-date earnings are less than $7,000. How much are the federal unemployment taxes relating to his wages for the week? | ||||||
| $____________ | |||||||
| 4 | Wallace earns a monthly salary of $9,700. How much should be deducted from Wallace’s November salary for FICA taxes? | ||||||
| $____________ | |||||||
| 5 | Roger Deary works two hours per day, five days per week, cleaning kitchen equipment. His regular wage rate is $7.00 per hour and he is not required to have federal income or state income taxes withheld, due to his low level of earnings. How much is Roger’s weekly take-home pay? | ||||||
| $____________ | |||||||
Expert Answer
| ans 1 | |
| Total amount of federal unemployment tax during the year | 217.00 |
| 3500*6.2% | |
| ans 2 | |
| Total hours worked (11*5) | 55 |
| Gross pay per week | |
| Regular earning (40*11) | 440 |
| Overtime (15*11*1.5) | 247.5 |
| Gross pay | 687.5 |
| ans 3 | |
| Total amount of federal unemployment tax | 44.64 |
| 5*8*18*6.2% | |
| ans 4 | |
| FiCA Taxes | 742.05 |
| 9700*7.65% | |
| ans 5 | |
| Gross pay 2*5*7 | 70 |
| Less: FICA (70*7.65%) | 5.36 |
| Take home | 64.65 |
