Question

In: Accounting

The following information is for employee Ella Dodd for the week ended March 15. Total hours...

The following information is for employee Ella Dodd 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% with no maximum earnings.
    Medicare tax: 1.5% on all earnings.
    State unemployment: 5.4% with no maximum earnings; on employer.
    Federal unemployment: 0.8% with no maximum earnings; on employer.

a. Determine (1) total earnings, (2) total deductions, and (3) cash paid. If required, round interim calculations to two decimal places.

1. Total earnings $
2. Total deductions
3. Cash paid $

b. Determine each of the employer's payroll taxes related to the earnings of Ella Dodd for the week ended March 15. If required, round your answers to two decimal places.

Social security and Medicare taxes $
State unemployment tax   
Federal unemployment tax   
Total $

Solutions

Expert Solution

  • solution - ( Answer and Explanation for your better understanding ).

( Part -A )

a.1. TOTAL EARNING = $6240

Calculation :

  • For 40 hours = 15 per hour 40 hours = 6000
  • For next 8 hours = 15 2 , that is 30 per hour ( 30 per hour 8 ) = 240
  • TOTAL EARNING = 6000+240=$ 6240.

a.2. TOTAL DEDUCTIONS = $250

   Calculation :

  • Federal income tax withheld = $200
    United Fund deduction = $50
  • TOTAL DEDUCTIONS = 200+50 = $250.

a.3. CASH PAID = $5990

Calculation :

  • Cash paid = 6240-250=$5990

( PART - B )

b.1. Social security taxes and medicare taxes = $564

   Calculation :

Social security taxes and medicare taxes =  0.06 6240 + 1.5% of (6400+6240) = 374.4 + 189.6 = $564

b.2. State unemployment tax = $336.96

Calculation :

State unemployment tax = 5.4% of 6240 = $336.96

b.3. Federal unemployment tax = $49.92

Calculation :

Federal unemployment tax =  0.8% of 6240 = $49.92

  • Total taxes = $564 + $336.96 + $49.92 = $950.88
  • I am so glad you asked for help when you needed it. ?

ekkarill92 answered 2 years ago
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