Solved: Use the combined wage bracket tables, Exhibits 9-3 and 9-4, for Exercises 16 and

Gross pay is the amount of earnings before payroll _____ are withheld; net pay is the actual amount of the _____. (9.1)

Annual salaries are commonly prorated to be paid weekly, b iweekly, _____ and _____. (9-1)

Total gross pay includes regular pay and _____ pay, which according to federal law is for hours worked over _____ hours per week. (9-2)

When employees are paid on their production output, not hours worked, this is called _____. (9-3)

To calculate total gross pay for an employee paid on commission, we multiply the total _____ by the commission rate. (9-4)

A draw against commission is commission paid in _____ of sales and later _____ from the commission earned. (9-4)

The current employee tax rate for social security is _____ percent of gross earnings; the current tax rate for Medicare is _____ percent of gross earnings. (9-5)

The 2010 wage base limit for social security was _____. (9-5)

In addition to social security and Medicare tax withholdings, an employer is also responsible, by federal law, for withholding an appropriate amount of federal _____ tax from each employees paycheck. (9-6)

The combined wage bracket table is based on the _____ status of the employee and the _____ period used. The columns list the combined taxes to be withheld based on the number of withholding _____ claimed. (9-7)

Self-employed persons are responsible for social security and Medicare taxes at ______ the rate deducted for employees. This amounts to _____ percent for social security and _____ percent for Medicare. (9-8)

For companies with full and timely payments to the state unemployment system, the SUTA tax rate is ______ percent of gross earnings and the FUTA tax rate is ______ percent of gross earnings. (9-9)

A plan whereby employees are given a menu of fringe benefits from which to choose is known as the ______ style or ______ benefit program. (9-10)

Write the formula for quarterly estimated tax for self-employed persons. (9-11)

Use the percentage method to solve the following.Larry Alison is single, claims one withholding allowance, and earns $2,450 per month. a. What is the amount of Larrys paycheck after his employer withholds social security, Medicare, and income tax? b. If Larry gets married and changes to two withholding allowances, what will be the new amount of his paycheck? c. If he then gets a 15% raise, what is the new amount of his paycheck?

Use the combined wage bracket tables, Exhibits 9-3 and 9-4, for Exercises 16 and 17. How much combined tax should be withheld from the paycheck of a married employee earning $910 per week and claiming three withholding allowances?

Use the combined wage bracket tables, Exhibits 9-3 and 9-4, for Exercises 16 and 17. How much combined tax should be withheld from the paycheck of a single employee earning $4,458 per month and claiming zero withholding allowances?

Fran Mallory is married, claims five withholding allowances, and earns $3,500 per month. In addition to social security, Medicare, and FIT, Fran pays 2.1% state income tax, 1 _ 2 % for state disability insurance (both based on gross income), $43.11 for life insurance, and $72.30 to the credit union. As payroll manager for Frans company, calculate her net take-home pay per month.

Vanguard Fabricators has 83 employees on the assembly line, each with gross earnings of $329 per week. a. What are the total social security and Medicare taxes that should be withheld from the employee paychecks each week? b. At the end of the first quarter (13 weeks), what are the accumulated totals of the employees share and the matching taxes for FICA that Vanguard had sent to the IRS?

Paul Warren is a self-employed mechanic. Last year he had total gross earnings of $44,260. What are Pauls quarterly social security and Medicare payments due to the IRS?

Tim Ries earns $48,320 annually as a supervisor for the Lakeside Bank. a. If the SUTA tax rate is 5.4% of the first $7,000 earned in a year, how much SUTA tax must the bank pay each year for Tim? b. If the FUTA tax rate is 6.2% of the first $7,000 earned in a year minus the SUTA tax paid, how much FUTA tax must the bank pay each year for Tim?

Universal Exporting has three warehouse employees: John Abner earns $422 per week, Anne Clark earns $510 per week, and Todd Corbin earns $695 per week. The companys SUTA tax rate is 5.4%, and the FUTA rate is 6.2% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employees earnings. a. How much SUTA and FUTA tax did the company pay on these employees in the first quarter of the year? b. How much SUTA and FUTA tax did Universal pay in the second quarter of the year?

Sky High Crane Company employs 150 workers and has a gross payroll of $282,100 per week. Fringe benefits are 6 1 _ 2 % of gross payroll for sick days and holiday leave, 9.1% for health and hospital insurance, 4.6% for the retirement fund, and $10.70 per employee per week for a stock purchase plan. a. What is the total weekly cost of fringe benefits for the company? b. What percent of payroll does this represent? c. What is the companys annual cost of fringe benefits?

Ransford Alda is a self-employed security consultant with estimated annual earnings of $90,000. His social security tax rate is 12.4%, Medicare is 2.9%, and his federal income tax rate is 14%. a. How much estimated tax must Ransford send to the IRS each quarter? b. What form should he use?

Two of your friends, Chuck and Joan, have been dating for a year. Chuck earns $3,000 per month as the manager of an Aeropostale store. Joan is a sophomore in college and is not currently working. They plan to marry but cannot decide whether to get married now or wait a year or two. After studying the payroll chapter in your business math class, you inform Chuck that married couples generally pay less income taxes and that if they got married now instead of waiting, he would have less income tax withheld from his paychecks. Chucks current tax filing status is single, one exemption. If he and Joan got married, he could file as married, two exemptions. Use the percentage method and Exhibits 9-1 and 9-2 to calculate the following: a. How much income tax is withheld from Chucks paycheck each month now? b. How much income tax would be withheld from Chucks check if he and Joan got married? c. Assuming Joan has three more years of full-time college before going to work and Chuck expects a 10% raise in one year and a 15% raise the year after, what is the total three-year tax advantage of their getting married now?