Contemporary Mathematics For Business and Consumers Brief Edition 7th Edition Brechner Test Bank

Contemporary Mathematics for
Business and Consumers Brief Edition

7th Edition Brechner Test Bank
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CHAPTER 9: PAYROLL
1. The term earnings means the total amount of earnings due an
employee for work performed before payroll deductions are withheld.
ANSWER: gross
2. A(n) is a fixed gross amount of pay, equally distributed over

periodic payments, without regard to the number of hours worked.
ANSWER: salary
3. are earnings for routine or manual work, usually based on the

number of hours worked.
ANSWER: Wages
4. A(n) pay rate schedule is based on production output.
ANSWER: piecework
5. is a method of compensation primarily used to pay employees who

sell a company's goods or services.
ANSWER: Commission
6. A(n) is a commission paid in advance of sales and later deducted

from the commissions earned.
ANSWER: drawing account
7. The payroll tax has no annual maximum salary limit for the
employee and the employer share.
ANSWER: Medicare
8. The payroll tax that is also known as the tax

has an annual maximum salary limit for both the employee and employer shares.
ANSWER: FICA, social security
9. FUTA is a federal tax that is paid by employers for each employee to provide
compensation to workers who have lost their jobs.
ANSWER: unemployment
10. The pay schedule requires that wages be paid every two weeks or
twenty-six paychecks per year.
ANSWER: biweekly
11. Walt's monthly salary is $6,962.50. What would be his equivalent semimonthly salary?
a. $2,451.92
b. $2,375.96
c. $2,840.41
d. $3,481.25
ANSWER: d
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Chapter 9: Payroll
12. Saira's weekly salary is $1,063.46. What would her gross salary be if it were on a semimonthly
basis? (Round your answer to the nearest cent)
a. $2,126.92
b. $50,089.92
c. $2,304.16
d. $2,043.46
ANSWER: a
13. Frank's base pay rate is $15.50 per hour, with overtime pay of time-and-a-half, and double-
time for holidays. Calculate her gross pay if she worked 6.5 holiday hours in addition to 38.5
hours Monday through Saturday. (Round your answer to the nearest cent)
a. $643.75
b. $359.50
c. $823.50
d. $798.25
ANSWER: d
14. Rai's base pay rate is $9.00 per hour, with overtime pay of time-and-a-half, and double-time
for holidays. Calculate her gross pay if she worked 6 holiday hours in addition to 39.5 hours
Monday through Saturday. (Round your answer to the nearest cent)
a. $463.50
b. $408.00
c. $364.00
d. $340.50
ANSWER: a
15. Kate's base pay rate is $12.50 per hour, with overtime paid at time-and-a-half. Find her gross
pay if she worked 45.5 hours Monday through Saturday. (Round your answer to the nearest
cent)
a. $603.13
b. $568.75
c. $613.03
d. $630.13
ANSWER: a
16. Lee Lu is paid $12.50 per hour, with overtime pay of time-and-a-half for Saturday work and
double time for Sunday. Calculate her gross pay if she worked 35 hours during the week, 5
hours Saturday and 3 hours Sunday. (Round your answer to the nearest cent)
a. $575.00
b. $587.50
c. $606.25
d. $750.00
ANSWER: c
Chapter 9: Payroll
17. Wind Song is paid $15.50 per hour, with overtime pay of time-and-a-half for Saturday work
and double time for Sunday. Calculate her gross pay if she worked 38 hours during the week
(Monday through Friday) and 8 hours Sunday. (Round your answer to the nearest cent)
a. $587.55
b. $837.00
c. $705.25
d. $535.75
ANSWER: b
18. Workers who manufacture shirts are sometimes paid based on the number of shirts they
produce. Compute Lyle's gross pay if she made 380 shirts. The rate per shirt is given by the
differential piecework schedule below:
Pay Level Items Produced Rate per Item

1 1−187 $7.35
2 Over 187 $8.37
a. $2,586.00
b. $2,650.20
c. $2,753.20
d. $2,989.86
ANSWER: d
19. Workers who manufacture belts are sometimes paid based on the number of belts they
produce. Compute Ada's gross pay if she made 754 belts. The rate per belt is given by the
differential piecework schedule below:

1 1−240 $4.20
2 Over 240 $5.13
a. $1,092.80
b. $3,644.82
c. $2,452.82
d. $4,321.82
ANSWER: b
Chapter 9: Payroll
20. Jessica has a job making baskets. Last week she made a total of 226 baskets. Calculate her
gross pay if she is paid on the following differential piecework schedule:
Pay Level Items Produced Rate

1 1−105 $7.10
2 106−255 $8.14
3 Over 255 $9.78
a. $1,604.60
b. $1,839.64
c. $1,730.44
d. $2,210.28
ANSWER: c
21. The Monty Corporation has a staff of sales people who are paid a monthly salary of $1,600.00
plus an incremental commission based on the table below. If Sally sells $29,700.00, what is
her total gross pay for the month?
Level Sales Volume Commission Rate

1 9,100−17,600 8.1%
2 Over 17,600 9%
a. $3,576.00
b. $3,377.50
c. $4,103.50
d. $4,076.00
ANSWER: b
22. As a sales person for Fresh Flowers, Carlos is paid an incremental commission based on the
table below. If he sells $12,900.00, what is his total gross pay?

1 1−5,700 4.5%
2 5,701−9,900 5.1%
3 Over 9,901 5.8%
a. $623.70
b. $644.70
c. $657.90
d. $748.90
ANSWER: b
Chapter 9: Payroll
23. Frank's Factories has a staff of sales people like Anthony, who receives a monthly salary of
$2,750.00 plus an incremental commission based on the table below. If he sells $27,300.00,
what is his total gross pay for the month?

1 8,201−15,000 4.1%
2 Over 15,000 4.6%
a. $3,594.60
b. $1,950.67
c. $3,337.14
d. $4,293.60
ANSWER: a
24. Robert works for Southern Consulting as a sales executive. He is paid a monthly salary of
$3,350.00 plus a straight commission of 4.3% on all sales over $10,100.00. If he sells
$15,300.00, what is his total gross pay for the month?
a. $3,573.60
b. $3,784.30
c. $4,007.90
d. $8,550.00
ANSWER: a
25. Carolyne is paid $1,000.00 biweekly. This year, to date, she has earned $25,300.00. What will
be the total deduction for Social Security and Medicare taxes on her next paycheck? (Social
Security tax is 6.2% of gross wages up to $106,800. Medicare tax is 1.45% of all gross wages.)
a. $155.80
b. $94.60
c. $76.50
d. $213.05
ANSWER: c
26. What will be the total deduction for social security and Medicare taxes on Rony's next
semimonthly paycheck of $3,960.00, if she has already earned $42,560.00 this year? (Social
security tax is 6.2% of gross wages up to $106,800. Medicare tax is 1.45% of all gross wages.)
a. $283.52
b. $302.94
c. $101.87
d. $242.92
ANSWER: b
Chapter 9: Payroll
27. Mary earned $41,258.75 for the past calendar year. How much did she pay for the year in
social security and Medicare taxes? (Social Security Tax is 6.2% of gross wages up to
$106,800. Medicare Tax is 1.45% of all gross wages.)
a. $2,931.25
b. $3,225.31
c. $3,156.29
d. $3,425.31
ANSWER: c
28. Naomi received weekly wages of $1,185.58. She is married and is entitled to 7 withholding
allowances. How much income tax will be withheld, based on the percentage method tables in
Exhibits 9-1 and 9-2 from your text?
a. $0
b. $20.29
c. $57.94
d. $82.66
ANSWER: c
29. Find the amount of income tax withheld from Sun Jung's monthly paycheck of $8,612.50
using the percentage method tables in Exhibits 9-1 and 9-2 from your text. Sun Jung is single
and claims 2 withholding allowances.
a. $1,156.36
b. $1,279.24
c. $1,619.33
d. $1,754.27
ANSWER: c
30. Find the amount of income tax withheld from Karen's semimonthly gross paycheck of
$1,937.50 using the percentage method tables in Exhibits 9-1 and 9-2 from your text. Karen is
married and claims 4 withholding allowances.
a. $159.50
b. $152.48
c. $97.75
d. $104.33
ANSWER: d
31. Cross receives a monthly paycheck from a bakery plant of $3,500.30. She is married and is
entitled to 3 withholding allowances. How much is her taxable income? Use the percentage
method tables in Exhibits 9-1 and 9-2 from your text.
a. $2,525.3
b. $3,044.06
c. $3,079.16
d. $3,289.73
ANSWER: a
Chapter 9: Payroll
32. Cazz receives a semimonthly paycheck from a jazz club of $4,500.00. He is married and is
entitled to 1 withholding allowance. Using the percentage method, calculate the amount of
income tax that should be withheld from his paycheck each pay period. Use tables in Exhibits
9-1 and 9-2 from your text.
a. $732.41
b. $931.41
c. $658.70
d. $630.54
ANSWER: c
33. Christopher receives gross monthly wages of $5,250.00. He is married and is entitled to 3
withholding allowances. How much income tax will be withheld, based on the percentage
method tables in Exhibits 9-1 and 9-2 from your text?
a. $539.22
b. $463.10
c. $690.12
d. $787.50
ANSWER: b
34. Manny is paid $2,640.00 on a monthly basis. He is single and is entitled to 1 withholding
allowance. How much income, social security, and Medicare taxes will be withheld, based on
the combined wage bracket tables in Exhibits 9-3 and 9-4 from your text?
a. $472.55
b. $417.49
c. $489.49
d. $508.49
ANSWER: c
35. Penny is paid a gross wage of $2,648.00 on a monthly basis. She is single and is entitled to 2
withholding allowances. How much income tax, social security, and Medicare will be
withheld based on the combined wage bracket tables in Exhibits 9-3 and 9-4 from your text?
a. $417.49
b. $463.49
c. $440.49
d. $371.49
ANSWER: c
Chapter 9: Payroll
36. Family Flowers employs 17 people, of whom 14 earn gross pay of $640.00 each and 3 earn
gross pay of $720.00 each on a weekly basis. What is the employer's share of total social
security and Medicare taxes for the first quarter of the year? (Social security tax is 6.2% of
wages up to $106,800. Medicare tax is 1.45% of all wages.)
a. $640.00
b. $720.00
c. $850.68
d. $11,058.84
ANSWER: d
37. Compute Austin's total social security and Medicare taxes for the fourth quarter, if she is self-
employed and earns $5,000.00 on a semimonthly basis. (For self-employed persons, social
security tax is 12.4% of wages up to $106,800, and Medicare tax is 2.9% of all wages.)
a. $1,476.60
b. $2,295.00
c. $4,180.80
d. $4,590.00
ANSWER: c
38. The weekly payroll of Abkar Hardware includes 19 employees who earn $280.00. How much
is the employer's share of total social security and Medicare taxes for the first quarter of the
year?
a. $278.46
b. $5,290.74
c. $516.28
d. $10,581.48
ANSWER: b
39. Compute Darryl's total social security and Medicare taxes for the third quarter, if she is self-
employed and earns $1,020.00 on a weekly basis.
a. $2,028.78
b. $1,014.39
c. $1,269.45
d. $1,885.58
ANSWER: a
Chapter 9: Payroll
40. The SUTA rate for Worldwide Industries is 5.4% and its FUTA rate is 6.2% less the 5.4%
SUTA credit. If its weekly payroll is $52,174.00 and none was for payments to employees in
excess of the $7,000.00 wage base, then what are the total FUTA and SUTA taxes for the
payroll?
a. $3,233.11
b. $2,764.65
c. $3234.79
d. $6,052.19
ANSWER: c
41. The SUTA rate for Westcoast Publishers is 5.4% and its FUTA rate is 6.2% less the 5.4%
SUTA credit. If its biweekly payroll was $32,806.00 for 47 employees and none was for
payments to employees in excess of the $7,000.00 wage base, then what were the total FUTA
and SUTA taxes for the payroll?
a. $1,524.90
b. $2,033.97
c. $2,989.96
d. $1,476.27
ANSWER: b
42. The SUTA rate for LARVA Corporation is 5.4% and its FUTA rate is 6.2% less the 5.4%
SUTA credit. If its semimonthly GROSS payroll is $252,400.00 and none was for payments to
employees in excess of the $7,000.00 wage base, then what are the total FUTA and SUTA
taxes for the payroll?
a. $18,231.71
b. $22,219.51
c. $24,934.52
d. $15,648.80
ANSWER: d
43. The last semimonthly payroll of Available Temp Services was $135,600.00 of gross wages for
113 employees. Of the total, none was for payments to employees in excess of the $7,000.00
wage base. What were the total FUTA and SUTA taxes for the payroll? The company's SUTA
rate is 5.4% and its FUTA rate is 6.2% less the 5.4% SUTA credit.
a. $8,407.20
b. $15,729.60
c. $7,322.40
d. $9,492.00
ANSWER: a
Chapter 9: Payroll
44. The last semimonthly payroll of Capital Construction was $77,763.00 of gross wages for 49
employees. The company pays 4.9% of payroll for vacations and sick leave and $62.19 per
employee for health insurance. What percent of payroll is the total cost of fringe benefits?
(Round your answer to the nearest tenth of a percent)
a. 3.9%
b. 4.9%
c. 8.8%
d. 55.6%
ANSWER: c
45. Seaside Hotels employs 64 workers with a gross weekly payroll of $41,536.00. Fringe benefits
are $36.33 per employee for dental insurance and $8.86 per employee for discount club
memberships. What percent of payroll is the total cost of fringe benefits? (Round your answer
to the nearest tenth of a percent)
a. 5.6%
b. 7.0%
c. 1.4%
d. 19.6%
ANSWER: b
46. West-Coast Publishers employs 43 workers with a gross biweekly payroll of $47,128.00.
Fringe benefits are $8.31 per employee for life insurance and 10.9% of payroll for a stock
purchase plan. What is the total cost of fringe benefits?
a. $5,494.28
b. $5,163.95
c. $357.33
d. $5,136.95
ANSWER: a
47. The last weekly payroll of Available Temp Services was $33,110.00 for 55 employees. The
company pays 7.1% of payroll for vacations and sick leave and $58.06 per employee for
health insurance. What percent of payroll is the total cost of fringe benefits? (Round your
answer to the nearest tenth of a percent)
a. 9.6%
b. 10.3%
c. 16.7%
d. 18.9%
ANSWER: c
Chapter 9: Payroll
48. Capital Construction employs 79 workers with a gross weekly payroll of $35,076.00. Fringe
benefits are $30.98 per employee for dental insurance, $9.15 per employee for discount club
memberships and 6.6% of payroll for a pension plan. What is the total cost of fringe benefits?
a. $5,485.29
b. $4,245.67
c. $3,170.27
d. $2,447.42
ANSWER: a
49. Compute Lenny's estimated tax payment for the third quarter. He is self-employed and he
expects to earn $40,800.00 this year. His estimated income tax rate is 19%.
a. $3,202.80
b. $7,752.00
c. $2,505.33
d. $3,498.60
ANSWER: d
50. Gus is the self-employed owner of Four Paws Pet Supply. His estimated annual earnings are
$43,280.00 and he expects to pay 18% of this amount in income tax. What will be his
quarterly estimated tax payment for the second quarter?
a. $7,790.40
b. $3,603.06
c. $1,655.46
d. $2,319.00
ANSWER: b
51. Juanita is the self-employed owner of Juanita's Linens. Her estimated annual earnings are
$73,040 and she expects to pay 27% of this amount in income tax. What will be her quarterly
estimated tax payment for the third quarter? (For self-employed persons, social security tax is
12.4% of wages up to $106,800, and Medicare tax is 2.9% of all wages.)
a. $2,264.24
b. $4,930.20
c. $7,723.98
d. $529.54
ANSWER: c
52. Bono is the self-employed owner of JAB Consulting. Her estimated annual earnings are
$68,480.00 and she expects to pay 22% of this amount in income tax. What will be her
quarterly estimated tax payment for the second quarter? (For self-employed persons, social
a. $6,385.76
b. $3,766.40
c. $2,122.88
d. $496.48
ANSWER: a
Chapter 9: Payroll
53. Scott Stewart is the self-employed owner of Stewart Software. His estimated annual earnings
are $48,000.00 and he expects to pay 18% of this amount in income tax. What will be his
quarterly estimated tax payment for the second quarter? (For self-employed persons, social
a. $348.00
b. $2,160.00
c. $3,996.00
d. $1,488.00
ANSWER: c
54. Gina's base pay rate is $12.25 per hour, with overtime pay of time-and-a-half, and double-time
for holidays. Calculate her gross pay if she worked 4.5 holiday hours in addition to 39 hours
Monday through Saturday. (Round your answer to the nearest cent)
a. $688.00
b. $588.00
c. $532.88
d. $798.25
ANSWER: b
55. East Coast DVD employs 54 workers with a gross biweekly payroll of $94,126. Fringe
benefits are $10.18 per employee for life insurance and 12.3% of payroll for a stock purchase
plan. What is the total cost of fringe benefits?
a. $5,494.28
b. $104,126.22
c. $2357.34
d. $12,127.22
ANSWER: d
56. Workers who manufacture baseball caps are sometimes paid based on the number of baseball
caps they produce. Compute Jillian's gross pay if she made 359 belts. The rate per belt is given
by the differential piecework schedule below:

1 1−125 $4.25
2 Over 125 $5.55
a. $1,829.95
b. $3,644.82
c. $2,829.95
d. $1,992.45
ANSWER: a
Chapter 9: Payroll
57. The last semimonthly payroll of Garcia Carpentry was $84,248 of gross wages for 38
employees. The company pays 5.2% of payroll for vacations and sick leave and $72.22 per
employee for health insurance. What percent of payroll is the total cost of fringe benefits?
(Round your answer to the nearest tenth of a percent)
a. 2.9%
b. 8.5%
c. 9.5%
d. 25.4%
ANSWER: b
58. Wind Song is paid $14.70 per hour, with overtime pay of time-and-a-half for Saturday work
and double time for Sunday. Calculate her gross pay if she worked 33 hours during the week
(Monday through Friday) and 10 hours Sunday. (Round your answer to the nearest cent)
a. $879.10
b. $779.10
c. $632.21
d. $532.21
ANSWER: b
59. Mount Pleasant Hotels employs 114 workers with a gross weekly payroll of $91,898. Fringe
benefits are $42.29 per employee for dental insurance and $9.34 per employee for discount
club memberships. What percent of payroll is the total cost of fringe benefits? (Round your
answer to the nearest tenth of a percent)
a. 9.5%
b. 5.4%
c. 11.4%
d. 6.4%
ANSWER: d
60. Calculate the gross earnings per pay period for the pay schedule, rounding to the nearest cent:
Annual Salary Monthly Semimonthly Biweekly Weekly

$2,400.00
ANSWER: $28,800.00; $1,200.00; $1,107.69; $553.85

$20,000.00
ANSWER: $1,666.67; $833.33; $769.23; $384.62
Chapter 9: Payroll

$543.15
ANSWER: $28,243.80; $2,353.65; $1,176.83; $1,086.30

$55,300.00
ANSWER: $4,608.33; $2,304.17; $2,126.92; $1,063.46

$86,400.00
ANSWER: $7,200.00; $3,600.00; $3,323.08; $1,661.54

$1,600.00
ANSWER: $19,200.00; $800.00; $738.46; $369.23

$2,350.00
ANSWER: $56,400.00; $4,700.00; $2,169.23; $1,084.62

$810.00
ANSWER: $21,060.00; $1,755.00; $877.50; $405.00

$726.25
ANSWER: $37,765.00; $3,147.08; $1,573.54; $1,452.50
Chapter 9: Payroll
69. Complete the payroll record. The company pays overtime for all hours worked over 40 at the
rate of time-and-a- half, rounding to the nearest cent:
Hourly Total Overtime Overtime Total

Employee M T W T F S S Rate Hours Hours Pay Pay
Logan 5 9 8 7 9 0 4 $5.25
Harris 9 9 8 9 9 0 0 $9.15
Stearns 6 8 8 8 9 8 0 $12.75
ANSWER: Logan 42 2 $15.75 $225.75

Harris 44 4 $54.90 $420.90
Stearns 47 7 $133.88 $643.88
Narrative 9-1
Workers are paid on a differential piecework schedule as follows:

Pay Level Units Produced Rate per Unit
1 1−50 $2.82
2 51−100 $3.05
3 101−150 $3.55
4 over 150 $4.30
70. Refer to Narrative 9-1. Calculate the amount of last week's total gross pay for the employees:
Employee Units Produced Total Gross Pay

Cory, A. 62
ANSWER: $177.60

Casey, E. 136
ANSWER: $421.30

Clark, N. 210
ANSWER: $729.00
73. Calculate the monthly social security and Medicare withholding for the employee, rounding to
nearest cent (Social security tax is 6.2% of wages up to $106,800. Medicare tax is 1.45% of all
wages):
Employee Year to Date Earnings Current Month Social Security Medicare

Davis, C. $32,516 $3,514
ANSWER: $217.87; $50.95
Chapter 9: Payroll
wages):

Arthur, H. $59,610 $5,927
ANSWER: $367.47; $85.94
wages):

Alwine, T. $123,000.00 $16,500.00
ANSWER: $1,023.0; $239.25
76. Use the combined wage bracket tables to complete the payroll roster:
Marital Withholding Pay Gross Income Tax

Employee Status Allowances Period Earnings Withholding
Purcell, S. S 2 Monthly $4,927.00
ANSWER: $1,064.91

Roberts, J. M 4 Weekly $991.00
ANSWER: $139.12

Anderson, J. S 5 Monthly $2,815
ANSWER: $330.73
79. Use the percentage method of income tax calculations to complete the payroll roster:

Baker, D. M 2 Semimonthly $518.00
ANSWER: $0
Chapter 9: Payroll

Evans, F. S 0 Weekly $1,975.00
ANSWER: $412.24

Grant, H. S 1 Monthly $3,286.00
ANSWER: $379.50

Jones, M. M 5 Biweekly $2,014.00
ANSWER: $107.40
83. Ornell sells televisions for Bay City Electronics. He is on an incremental commission schedule
of 1.4% of sales up to $120,000 and 2.8% on sales over $120,000. What was Ornell's total
gross pay for last month if his sales volume was $194,500?
ANSWER: $3,766
84. Jerome's monthly salary is $4,302. What would be his equivalent biweekly salary? (Round to
the nearest cent)
ANSWER: $1,985.54
85. Lonnie Watkins has gross earnings of $1,400.00 semi-monthly. If his company switches pay
schedules from semimonthly to biweekly, what are Lonnie's new gross earnings per pay
period? (Round to the nearest cent)
ANSWER: $1,292.31
86. Kate's monthly salary is $3,520.00. What would be her equivalent biweekly salary? (Round to
the nearest cent)
ANSWER: $1,624.62
87. Mari's base pay rate is $14.50 per hour, with over time paid at time-and-a-half. Find her gross
pay if she worked 52 hours Monday through Saturday and 5 hours of over time on Sunday.
(Round to the nearest cent)
ANSWER: $949.75
Chapter 9: Payroll
88. Melissa Grossman is the manager of a video store and earns $9.50 per hour with time-and-a-
half for overtime and double-time on Sundays. What is Melissa's total gross pay for last week
if she worked 43 hours Monday through Saturday, plus a 5-hour shift on Sunday?
ANSWER: $517.75
89. As a sales person for Copper Penny Amusements, Clyde receives a straight commission of
7.4%. If he sells $42,128, what is his total gross pay?
ANSWER: $3,117.47
90. Brian Walker works for a company that manufactures electric switches. He is paid on a
differential piecework schedule as follows: 1−50 switches, $2.50 per switch; 51−100 switches,
$3.50 per switch; and over 100 switches, $4.75 per switch. What is Brian's total gross pay if he
produced 167 switches this week?
ANSWER: $618.25
91. As a sales person for Four Paws Pet Supply, Karen receives a straight commission of 5.2%. If
she sells $23,400.00, what is her total gross pay?
ANSWER: $1,216.80
92. Frank McDonald sells computer systems for United Electronics. He is on an incremental
commission schedule of 1.6% of sales up to $150,000 and 2.4% on sales over $150,000. What
was Frank's total gross pay for last month if his sales volume was $269,500?
ANSWER: $5,268
93. Thomas Getz is a salesman for Sharp Furniture Co. He is paid a 3.4% straight commission
with $1,500.00 drawing account. If he receives the draw at the beginning of the month and
then sells $183,200.00 during the month, how much commission is owed to Thomas?
ANSWER: $4,728.80
94. Barron Foster is a salesman for a new car dealer. He is paid 4.5% straight commission with
$1,900.00 drawing account. If he receives the draw at the beginning of the month and then
sells $205,110.00 during the month, how much commission is owed to Barron?
ANSWER: $7,329.95
95. Matthew Cone is a salesman for Ace Leasing. He earns a salary of $800.00 per month, plus a
commission of on all sales over $10,000.00. If Matthew sold $28,260.00 last month,
what was his total gross pay?
ANSWER: $1,804.30
Chapter 9: Payroll
Narrative 9-2
Use the information below to solve the following problems:
Tax Rate Wage Base

Social security 6.2% $106,800
Medicare 1.45% no limit
FUTA .8% $7,000
SUTA 5.4% $7,000
96. Refer to Narrative 9-2. Edgar is paid $3,200.00 biweekly. So far this year he has earned
$22,400.00. What will be the total deduction for social security and Medicare taxes on his next
paycheck?
ANSWER: $244.80
97. Refer to Narrative 9-2. Jenna Bernstein earns $2,823.00 per month. What are the withholdings
for social security and Medicare for Jenna for the month of January? (round to the nearest
cent)
ANSWER: $215.96
98. Refer to Narrative 9-2. Karen Forstrom has biweekly gross earnings of $2,920.00. What are
her total social security and Medicare tax withholdings for an entire year?
ANSWER: $5,807.88
99. Refer to Narrative 9-2. Jane Loprest is self-employed with an annual salary of $49,200.00. In
addition to the social security and Medicare tax, her estimated federal income tax rate is 14%.
How much quarterly estimated tax must Jane send to the IRS each quarter?
ANSWER: $3,603.90
100. Refer to Narrative 9-2. Ann Coulter started to work for the Laurie Co. in January of this year
as an executive. Her salary is $13,500.00 per month. What will be the withholding for social
security and Medicare for Ann for the month of May of this year?
ANSWER: $1,032.75
101. Refer to Narrative 9-2. David Wheeler earns $3,200.00 per month. His Federal Income Tax
withholding is $593.00. In addition to social security and Medicare, David also pays 2.3%
state income tax, for state disability insurance (both based on gross earnings), $16.18 for
union dues, and $23.50 for term life insurance. What is David's net take-home pay for
January?
ANSWER: $2,232.92
Chapter 9: Payroll
102. Refer to Narrative 9-2. A company has 22 employees, 15 with gross earnings of $325.00 each
per week and 7 with gross earnings of $475.00 each per week. What are the employees' share
and the employer's share of the social security and Medicare tax for the first quarter of the
year?
a. Employees' share?
b. Employer's share?
ANSWER:
a. $8,154.90
b. $8,154.90
103. Refer to Narrative 9-2. Mountain Vineyards employs 15 people who each earn $840.00 on a
weekly basis. What is the employer's share of total social security and Medicare taxes for the
first quarter of the year?
ANSWER: $12,530.70
104. Refer to Narrative 9-2. Cindy Watson, a self-employed freelance writer, had total gross
earnings of $61,800.00 last year. What was the amount of social security and Medicare taxes
that Cindy was required to send to the IRS each quarter?
ANSWER: $2,363.85
105. Refer to Narrative 9-2. Michael Johns worked part time last year as a clerk in a convenience
store. His total gross earnings were $6,840.00.
a. How much SUTA tax must the store pay to the state for Michael?
b. How much FUTA tax must the store pay for Michael?
ANSWER:
a. $369.36
b. $54.72
106. Refer to Narrative 9-2. The SUTA rate for Montego Corporation is 5.4% and its FUTA rate is
6.2% less the 5.4% SUTA credit. If its monthly payroll is $153,720.00 and none was for
payments to employees in excess of the $7,000.00 wage base, then what are the total FUTA
and SUTA taxes for the payroll?
ANSWER: $9,530.64
107. Refer to Narrative 9-2. Jay Tile Works employs two installers. Rick earns $800.00 per week
and Stanley earns $530.00 per week. How much FUTA and SUTA tax does Jay Tile Works
owe for the first quarter of the year?
ANSWER: $1,071.98
Chapter 9: Payroll
108. Refer to Narrative 9-2. Solomon Plastics employs 272 workers and has a gross payroll of
$186,500.00 per week. Fringe benefits are 4 3/4% of gross payroll for sick days and maternity
leaves, 8.2% for health insurance, 3.6% for the retirement fund, and $28.75 per employee for a
stock purchase plan.
a. What is the company's weekly cost of fringe benefits?

b. What percentage of the payroll does this represent? (Round to the nearest hundredth of a
percent)
ANSWER: a. $38,685.75
b. 20.74%
109. Refer to Narrative 9-2. Fringe benefit costs associated with the $32,450.00 weekly payroll for
the 50 employees of Fontaine Factories are 4.1% of payroll for vacations and sick leave and
$119.25 per employee for health insurance. What is the total cost of fringe benefits?
ANSWER: $7,292.95
110. Refer to Narrative 9-2. Abraham Weiss is a self-employed computer consultant. His estimated
annual earnings this year are $90,000.00. In addition to social security and Medicare tax, his
federal income tax rate is 24%. How much quarterly estimated tax must Abraham send to the
IRS in the fourth quarter?
ANSWER: $8,842.50
111. Refer to Narrative 9-2. Sally is the self-employed owner of Tech Consulting. Her estimated
annual earnings are $104,640.00 and she expects to pay 27% of this amount in income tax.
What will be her quarterly estimated tax payment for the fourth quarter?
ANSWER: $11,065.68
Narrative 9-3
Use Exhibit 9-1,9-2, 9-3, or 9-4 from your text to solve the following problems.
112. Refer to Narrative 9-3. Katie received semimonthly wages of $4,181.25. She is single and is
entitled to three withholding allowances. Using the percentage method, how much income tax
will be withheld?
ANSWER: $731.21
113. Refer to Narrative 9-3. Using the percentage method to figure federal income tax, how much
income tax should be withheld from the paycheck of a married employee earning $3,850.00
per month and claiming three withholding allowances? (Round to the nearest cent)
ANSWER: $253.1
114. Refer to Narrative 9-3. Using the combined wage bracket tables, how much income tax, social
security, and Medicare should be withheld from the weekly paycheck of a married employee
earning $1,090.00 per week and claiming five withholding allowances?
ANSWER: $150.77
Chapter 9: Payroll
115. Refer to Narrative 9-3. Allison Cutler is single, claims one withholding allowance, and earns
$4,540.00 per month. Using the combined wage bracket tables calculate the amount of
Allison's paycheck after her employer withholds social security, Medicare, and income tax.
ANSWER: $1,016.31
116. Refer to Narrative 9-3. Use the combined wage bracket tables to find the amount of income,
social security, and Medicare taxes to be withheld from Maria's monthly paycheck of
$2,645.00. Maria is single and claims zero withholding allowances.
ANSWER: $537.49
117. Refer to Narrative 9-3. Use the combined wage bracket tables to find the amount of income,
social security, and Medicare taxes to be withheld from Carolyn's monthly paycheck of
$3,125.00. Carolyn is single and claims one withholding allowance.
ANSWER: $598.21
118. Refer to Narrative 9-3. Use the combined wage tables to find the amount of income, social
security, and Medical taxes to be withheld from Mari's monthly paycheck of $5,000.00. Mari
is single and claims three withholding allowances.
ANSWER: $1,010.03
security, and Medical taxes to be withheld from Mark's weekly paycheck of $1,350.00. Mark
is married and claims three withholding allowances.
ANSWER: $231.66
security, and Medical taxes to be withheld from Roger's weekly paycheck of $990.00. Roger is
married and claims zero withholding allowances.
ANSWER: $184.12

Contemporary Mathematics For Business and Consumers Brief Edition 7th Edition Brechner Test Bank

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Contemporary Mathematics For Business and Consumers Brief Edition 7th Edition Brechner Test Bank

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Contemporary Mathematics for

Business and Consumers Brief Edition

2. A(n) is a fixed gross amount of pay, equally distributed over

3. are earnings for routine or manual work, usually based on the

4. A(n) pay rate schedule is based on production output.

5. is a method of compensation primarily used to pay employees who

6. A(n) is a commission paid in advance of sales and later deducted

8. The payroll tax that is also known as the tax

Pay Level Items Produced Rate per Item

Pay Level Items Produced Rate per Item

Pay Level Items Produced Rate

Level Sales Volume Commission Rate

Level Sales Volume Commission Rate

Level Sales Volume Commission Rate

Pay Level Items Produced Rate per Item

Annual Salary Monthly Semimonthly Biweekly Weekly

ANSWER: $28,800.00; $1,200.00; $1,107.69; $553.85

Annual Salary Monthly Semimonthly Biweekly Weekly

ANSWER: $1,666.67; $833.33; $769.23; $384.62

Annual Salary Monthly Semimonthly Biweekly Weekly

ANSWER: $28,243.80; $2,353.65; $1,176.83; $1,086.30

Annual Salary Monthly Semimonthly Biweekly Weekly

ANSWER: $4,608.33; $2,304.17; $2,126.92; $1,063.46

Annual Salary Monthly Semimonthly Biweekly Weekly

ANSWER: $7,200.00; $3,600.00; $3,323.08; $1,661.54

Annual Salary Monthly Semimonthly Biweekly Weekly

ANSWER: $19,200.00; $800.00; $738.46; $369.23

Annual Salary Monthly Semimonthly Biweekly Weekly

ANSWER: $56,400.00; $4,700.00; $2,169.23; $1,084.62

Annual Salary Monthly Semimonthly Biweekly Weekly

ANSWER: $21,060.00; $1,755.00; $877.50; $405.00

Annual Salary Monthly Semimonthly Biweekly Weekly

ANSWER: $37,765.00; $3,147.08; $1,573.54; $1,452.50

Hourly Total Overtime Overtime Total

ANSWER: Logan 42 2 $15.75 $225.75

Workers are paid on a differential piecework schedule as follows:

Employee Units Produced Total Gross Pay

Employee Units Produced Total Gross Pay

Employee Units Produced Total Gross Pay

Employee Year to Date Earnings Current Month Social Security Medicare

ANSWER: $217.87; $50.95

Employee Year to Date Earnings Current Month Social Security Medicare

ANSWER: $367.47; $85.94

Employee Year to Date Earnings Current Month Social Security Medicare

ANSWER: $1,023.0; $239.25

Marital Withholding Pay Gross Income Tax

Marital Withholding Pay Gross Income Tax

Marital Withholding Pay Gross Income Tax

Marital Withholding Pay Gross Income Tax

Marital Withholding Pay Gross Income Tax

Marital Withholding Pay Gross Income Tax

Marital Withholding Pay Gross Income Tax

Tax Rate Wage Base

a. What is the company's weekly cost of fringe benefits?

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