رياضيات ١٠

CHAPTER 10
Payroll
.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

Learning Outcomes10-1
 Find the gross pay per paycheck based on salary.

 Find the gross pay per weekly paycheck based on
hourly wage.
 Find the gross pay per paycheck based on
piecework wage.
 Find the gross pay per paycheck based on
commission.

10-1-1 Find gross pay per paycheck based on salary
Section 10-1 Gross Pay
 Pay periods:
– Weekly: once a week or 52 times a year.
– Biweekly: every two weeks or 26 times a
year.
– Semimonthly: twice a month or 24 times a
year.
– Monthly: once a month or 12 times a year.

:HOW TO Find the gross earnings per pay period
Nicole earns $36,000 a year and

. is paid on a weekly basis
?What is her gross pay per week
.Divide $36,000 by 52 pay periods
$692.31
What if she is paid on a semimonthly
?basis
$1,500.00

…Examples
Find the gross earnings for:

 Carolyn, who earns $15,000 a year and is paid
weekly.
– $288.46
 Martha, who earns $48,000 a year and is paid
biweekly.
– $1,846.15
 Bill, who earns $35,000 a year and is paid
semimonthly.
– $1,458.33

…Key Terms
 Gross earnings (gross pay)

– The amount earned before deductions.
 Net earnings (net pay/take-home pay)
– The amount of your paycheck.
 Hourly rate or hourly wage
– The amount of pay per hour worked based on a
standard 40 hour work week.

…Key Terms
 Hourly rate or hourly wage

– The amount of pay per hour worked based on a
standard 40 hour work week.
 Overtime rate
– Rate of pay for hours worked that exceed 40
hours per week.
 Time and a half
– Standard overtime rate that is 1½ (or 1.5) times an
hourly rate.

…Key Terms
 Regular pay
– Earnings based on an hourly rate of pay.
 Overtime pay
– Earnings based on overtime rate of pay.

10-1-2 Gross pay per week based on hourly wages
STEP 1
Find the regular pay by multiplying the number of hours (40
or less) by the hourly wage.
STEP 2
Find the overtime pay by multiplying the hourly rate by the
overtime rate (usually 1.5) and then multiply that rate by the
number of hours that exceed 40.
STEP 3
Add the figures from Step 1 and Step 2.

10-1-2 Gross pay per week based on hourly wages
Theresa worked 45 hours last week. If her hourly

rate is $10.50/hour, find her total gross earnings.
Multiply 40 x $10.50 = $420.00
To calculate the overtime amount, multiply her hourly
rate by 1.5: $10.50 x 1.5 = $15.75
Multiply the overtime rate ($15.75) x the number of
overtime hours (5): $15.75 x 5 = $78.75
Add the regular and overtime pay:
$498.75

…Examples
The regular hourly rate in the production

department for these employees is
$6.50, and overtime is paid at 1.5.
Find the weekly earnings for these employees:
 Marcus, who worked 48 hours

– $338
 Allison, who worked 44 hours.
– $299

10-1-3 Gross pay per paycheck based on piecework
 Many employers motivate employees to produce

more by paying according to the quantity of
acceptable
– Such piecework rates are typically offered in
production or manufacturing jobs.

…Key Terms
 Piecework rate
– Amount of pay for each acceptable item produced.
 Straight piecework rate
– Piecework rate where the pay per piece is the same
no matter how many items are produced.
 Differential (escalating) piece rate
– Piecework rate that increases as more items are
produced.

…An Example
.Jorge assembles microchip boards

.He is paid on a differential piecework basis
:Rates are as follows

From 1-100 per board $1.32
From 101-300 per board $1.42
and over 301 per board $1.58
?If he assembles 317 boards how much will he earn

…An Example
 From 1-100 $1.32 per board

 From 101-300 $1.42 per board
 301 and over $1.58 per board
 100 x $1.32 = $132.00

 101-300 x $1.42= $284.00
 17 x $1.58 = $ 26.86
 Total earnings: $442.86

…An Example
Jillian gets paid a differential piece rate for

each shirt she sews. Consult the chart and
calculate her weekly earnings
if she sewed 352 shirts last week.
From 1-100: each $0.47

From 101-300: $0.60 each
301 and above: each $0.70
?What were her earnings
$203.40

Gross pay per paycheck
10-1-4 based on
Section 10-1
commission
Gross Pay
 Many salespeople earn a commission, a
percentage based on sales.

…Key Terms
 Commission:
– Earnings based on sales.
 Straight commission
– Entire pay based on sales.
 Salary plus commission
– A set amount of pay plus an additional amount based on
sales.

…Key Terms
 Commission rate:
– Percent of sales that are eligible for a commission.
 Quota
– A minimum amount of sales that is required before a
commission is applicable.

…An Example
Marisa is a restaurant supplies salesperson and

. receives 6% of her total sales as commission
.Her sales totaled $12,000 during a given week
.Find her gross earnings
.to find her earningsP = R x BUse the formula:

P = 0.06 x $12,000 = $720
Marisa’s earnings are $720

…An Example
Melanie Brooks works for a cosmetics company and

earns $200 a week in salary plus 30% commission on
.all sales over $500. She had sales of $1,250 last week
?How much were her total earnings
.Her salary would be $200 plus any applicable commission
The commission would be calculated at 30% on
$750 in sales or $225. Add this amount to her base
.salary
.The total is $425

EXERCISE SET A
1. Find the gross earnings for the employee. A regular

week is 40 hours and the overtime rate is 1.5
times the regular rate.
M T W F S S
R
Pick, J. 8 8 8 8 8 4 0 Hr. wage: $11.35
8 + 8 + 8 + 8 + 8 + 4 = 44 hours
11.35(40) = 454.00
11.35(4)(1.5) = 68.10
454.00 + 68.10 = $522.10

EXERCISE SET A
2. Find the gross earnings for the employee. A regular

week is 40 hours and the overtime rate is 1.5
times the regular rate.
M T W F S S
R
Mitze, A. 8 8 8 8 8 2 4 Hr. wage: $12.00
8 + 8 + 8 + 8 + 8 + 2 + 4 = 46 hours
12.00(40) = 480
12.00(6)(1.5) = 108
480 + 108 = $588

EXERCISE SET A
3. Varonia Reed is paid a weekly salary of $1,036.

What is her annual salary?
1,036(52) = $53,872
4. Glenda Chaille worked 27 hours in one week at

$12.45 per hour. Find her gross earnings.
$12.45(27) = $336.15

EXERCISE SET A
5. Ronald James is paid 1.5 times his hourly wage for

all hours worked in a week exceeding 40. His hourly
pay is $18.55 and he worked 52 hours in a week.
Calculate his gross pay.
$18.55(40) = $742
$18.55(12)(1.5) = $333.90
$742 + $333.90 = $1,075.90

EXERCISE SET A
Patsy Hilliard is paid 5% commission on sales of .6

.Find her gross pay .$18,200
$910 = )0.05($18,200
Find the gross earnings if Juanita Wilson earns .7

plus 4% of all sales over $3,000 and the $275
.sales for a week are $18,756
15,756 = 3,000 - 18,756
630.24 = )0.04(15,756
905.24 = 630.24 + 275

10-2 Learning Outcomes
 Find federal tax withholding per paycheck using

IRS tax tables.
 Find federal tax withholding per paycheck using the
IRS percentage method.
 Find Social Security and Medicare tax per
paycheck.
 Find net earnings per paycheck.

Find federal tax withholding per
10-2-1
paycheck using IRS tax
tables
Section 10-2
Payroll Deductions
 To calculate federal withholding tax using the IRS tax
tables, an employer must know:
– The employee’s filing status.
• Single, married or head of household.
– The number of withholding allowances the
employee claims.
– The type of pay period.
– The employee’s adjusted gross income.

…Key Terms
Section 10-2 Payroll Deductions
 Income tax
– Local, state or federal tax paid on one’s income.
 Federal tax withholding
– The required amount to be withheld from a person’s pay
to be paid to the federal government.

…Key Terms
 Tax-filing status
– Status based on whether the employee is married, single,
or head of household; determines the tax rate.
 W-4 form
– Required form to be held by the employer for
determining the amount of federal tax to be withheld.

Adjusted gross income
 Allowable adjustments to the gross income such as

qualifying IRAs, tax-sheltered annuities, 401Ks, or
employee-sponsored childcare or medical plans.
Tax-free or tax-deferred benefits?

…Examples
Using the tax tables in your text, find See pages

the amount of tax to be withheld for 356 - 357
the following employees:
 LeShonda, single, paid semimonthly,
claiming one allowance, and earning
$1,700 per pay period.
– $192
 Ricardo, married, paid weekly, claiming 4
allowances and earning $585 per pay period.
– $4

Find federal tax withholding per paycheck
10-2-2 using the IRS percentage
Section 10-2
method
Payroll Deductions
 Instead of using tax tables, many companies calculate
federal tax withholding using tax rates.
– The employer deducts a tax-exempt amount based
on the number of withholding allowances the
employee claims.
– The resulting amount is called the percentage
method income.

Find the withholding tax
:using
HOW TO the percentage
method
Section 10-2
Payroll Deductions
 Find the exempt-per-allowance amount from
the withholding allowance table.
– Identifying the amount exempt for one withholding
allowance according to the type of pay period.
 Multiply the number of withholding allowances
claimed by the amount found in the previous step.
 Subtract the exempt amount from the employee’s
adjusted gross income for the pay period.

…An Example
Dollie Calloway’s biweekly gross earnings are $3,150.

She is single, has no adjustments to income and claims two
withholding allowances on her W-4 form.
Find the payroll period using
fig. 10-4, at right, and multiply
the withholding allowance
amount by two.
Biweekly: $2($140.38) =
$280.76

…An Example

.withholding allowances on her W-4 form
Subtract the exempt amount ($280.76) from
the adjusted gross income ($3,150.00) and
. the result is $2,869.24
Consult the tax tables shown in
figure 10-5 in your text.
See page
Table 2a is the appropriate table 360
for Dollie’s earnings: single
and paid on a biweekly basis.
…An Example

.withholding allowances on her W-4 form
Identify the appropriate line where her income

” falls: “over $2,604 but not over $3,248
The tax is $468.95 plus 27% in excess of $2,604
$2,869.24 (taxable income) - $2,604=265.24
$265.24 x 0.27 = $71.61
Add $468.95 + $71.61 = $540.56
The amount of tax to be paid is $540.56.

Find Social Security and
10-2-3 Medicare tax per
Section 10-2
paycheck
Payroll
 Find the amount of the earnings subject to be taxed;
Deductions
adjusted gross income less than or equal to

$106,800 annually.
 Social Security taxes are currently capped at
$106, 800 (this threshold can change).
 Multiply the taxable amount by 6.2% or 0.062 to
find the amount in Social Security taxes.

:HOW TO Social Security and Medicare tax
 The Medicare tax amount is calculated at 1.45% (or 0.0145) of the

adjusted gross income.
– Unlike Social Security, there is no cap on income level.
Joe’s gross weekly pay is $1,654. How much
does he owe in Social Security and Medicare
taxes?
1,654(25)=86,008 (The salary for the entire year will not
exceed $106,800. The entire salary is to be taxed).
1,654(.062)=102.548 social security tax
1,654(0.0145)=23.98 Medicare tax
SS = $102.548 and Medicare = $23.98
Social Security and Medicare tax
 Employers also pay 6.2% for Social Security

and 1.45% for Medicare of each employee’s
gross pay.
 A self-employed person must pay the equivalent
of both amounts: 12.4% in Social Security and
2.9% in Medicare.

10-2-4 Find net earnings per paycheck
 Find the gross pay for the pay period.

 Find the adjustments to income deductions,
such as retirement or insurance.
 Find the Social Security and Medicare tax
based on the adjusted gross income.
 Find the Federal withholding tax using one of
the two methods.
– Tables or percentage.

10-2-4 Find net earnings per paycheck
 Find other withholding taxes, such as state tax.

 Find other deductions such as insurance or union
dues.
 Find the sum of all the deductions and subtract that
amount from the gross pay.
 The resulting amount is the take-home pay.

…An Example
Beth’s gross weekly earnings are $588. Four

percent of her gross earnings is deducted
for her nonexempt retirement fund and
.is deducted for insurance $27.48
Find her net earnings if Beth is married
.and claims three withholding allowances

…An Example
Retirement fund = $588 x 0.04 = $23.52

Withholding tax from Figure 10-3 =
$11 Social Security = $588 x 0.042 =
$24.70 Medicare = $588 x 0.0145 =
$8.53 Insurance = $27.48
Total deductions = $95.23
Net earnings = $588 - $95.23 = $492.77

EXERCISE SET A
.1Use Figure 10-3 to find the amount of federal tax

withholding for the gross earnings of the following married
persons who are paid weekly and have the indicated
.number of withholding allowances
,$682
zero allowances
Locate 680 in the “At least” column and move across to the
.column with 0 at the top. Withholding tax is $53

EXERCISE SET A
Find the employee’s Social Security and Medicare .3

.taxes deducted for each pay period
Yearly gross income of $24,000
Social Security = 24,000(0.042) = 1,008

Medicare = 24,000(0.0145) = 348

EXERCISE SET A
4. Find the employee’s Social Security and Medicare

taxes deducted for each pay period.
Biweekly gross income of $1,426 Social
Security = 1,426(0.042) = 59.89

Medicare = 1,426(0.0145) = 20.68

10-3 Learning Outcomes
 Find an employer’s total deposit for withhold tax,

Social Security tax, and Medicare tax per pay
period.
 Find an employer’s SUTA and FUTA tax due for a
quarter.

Total Deposit for Withholding Find Employer’s
10-3-1 Social Security Tax and Medicare TaxTax,
Section 10-3 The Employer’s Payroll Taxes
 Find the total of withholding tax for all

employees for the pay period.
 Find Social Security tax and Medicare tax for all
employees for thee period.
– Multiply by two to include the employer’s portion.
 Add the Social Security, Medicare and withholding tax
amounts for total amount.

:HOW TO Social Security Tax and Medicare TaxTax,
Employee Gross Withholding Social Medicare Net

Earnings Security Earnings
Plumlee $1,050 $57.73 $65.10 $15.23 $911.94
Powell 2,085 168.05 129.27 30.23 1,757.45
Randle 1,995 174.80 123.69 28.93 1,667.58
Robinson 2,089 350.45 129.52 30.29 1,578.74

:HOW TO Social Security Tax and Medicare TaxTax,
Employee’s Employer’s
Contribution Contribution Total
Social
Security $447.58 $447.58 $895.16
Medicare $104.68 $104.68 $209.36
Withholding $751.03 0 $751.03
Total Employer Deposit $1,855.55

Find an Employer’s SUTA Tax
10-3-2
and FUTA Tax for a
Quarter
Section 10-3
The Employer’s Payroll Taxes

 FUTA (Federal Unemployment Tax Act) and
SUTA (State Unemployment Tax) are paid
quarterly—entirely by the employer.
– They do not affect the employee’s paycheck.
 FUTA is currently 6.2% of the first $7,000 earned by
an employee in a year minus any amount the
employer has paid in SUTA (up to 5.4%).

FUTA and
Section 10-3 SUTA
The Employer’s Payroll Taxes
 The amount a company pays in SUTA will depend on

a company’s unemployment history.
– If an employer pays 5.4% in SUTA, then the company will
pay 0.8% in FUTA.
 If the amount owed in FUTA in a given quarter is less
than $500, no payment is made that quarter.
– The amount is added to the following quarter.

…An Example
George earns $40,000 a year. If the SUTA rate is 5.4%,

calculate the amount of SUTA that George’s employer will
pay on his behalf for the first quarter.
Then, calculate the amount of FUTA.
[Remember, it is calculated only on the first $7,000 in income.]
SUTA = $378
FUTA = $ 56

EXERCISE SET A
26. Vince Bremaldi earned $32,876 last year. The state

unemployment tax paid by his employer is 5.4% of
the first $7,000 earned in a year. How much SUTA
tax must Vince’s employer pay for him? How much
FUTA tax must Vince’s employer pay?
SUTA tax = 0.054(7,000) = 378

FUTA tax = 0.008(7,000) = 56

Exercises Set A

Practice Test

PRACTICE TEST
2. June Jackson earns $18.59 an hour. Find her gross

earnings if she worked 46 hours (time and a half for
overtime over 40 hours).
18.59(40) = 743.60
18.59(6)(1.5) = 167.31
Gross earnings = 743.60 + 167.31 = 910.91

PRACTICE TEST
4. Stacey Ellis is paid at the following differential

piece rate: 1–100, $2.58; 101–250, $2.72; 251 and
up, $3.15. Find her gross earnings for completing
475 pieces.
2.58(100) = 258
2.72(150) = 408
3.15(225) = 708.75
258 + 408 + 708.75 = 1,374.75

PRACTICE TEST
6. Carlo Mason works on 5% commission. If he sells

$17,500 in merchandise, find his gross earnings.
0.05(17,500) = 875
8. Find the Social Security tax (at 4.2%) and the

Medicare tax (at 1.45%) for Anna Jones, whose gross
earnings are $513.86. Round to the nearest cent.
Social Security = 0.042(513.86) = 21.58
Medicare = 0.0145(513.86) = 7.45

PRACTICE TEST
10. How much income tax should be withheld for Terry

McLean, a married employee who earns $686 weekly
and claims two allowances? (Use Figure 10-3 .)
Locate 680 in the “At least” column and move across to
the column with 2 at the top. The tax is
$32.
12. If LaQuita White had net earnings of $877.58 and total

deductions of $261.32, find her gross earnings.
877.58 + 261.32 = 1,138.90

PRACTICE TEST
14. Amiee Dodd is married, earns $3,521 biweekly, and

claims four withholding allowances. By how much
must her gross earnings be reduced?
From Figure 10-4 , one withholding allowance for a

biweekly payroll period is $140.38.
140.38(4) = 561.52 amount by which gross
earnings are reduced

PRACTICE TEST
16. Emilee Houston is single and is paid semimonthly. She

earns $1,682 each pay period and claims zero
withholding allowances. How much federal income
tax is withheld from her paycheck?
Use Figure 10-2 to locate $1,680 in the “At least”

column and move across to the column with 0 at the
top. The amount is $225, so $225 is withheld from
her paycheck.

PRACTICE TEST
Complete the weekly register for married employees in Table .18

The number of each person’s allowances is listed after . 10-3
. each name. Round to the nearest cent. Use Figure 10-3
Employee Gross Social Medicare Withholding Other Net
(allow) earnings Security tax deduct. earnings
Love (1) $673.80 ?? ?? ?? $12.87 ??
Social Security = 673.80(0.042) = 28.30

Medicare = 673.80(0.0145) = 9.77
Withholding tax = 41.00
Other deductions = 12.87
Total deductions = 91.94
Net earnings = 673.80 -
91.94 = 581.86
PRACTICE TEST
Complete the weekly register for married employees in Table .20

The number of each person’s allowances is listed after . 10-3
. each name. Round to the nearest cent. Use Figure 10-3
Employee Gross Social Medicare Withholding Other Net
(allow) earnings Security tax deduct. earnings
Ferrante $577.15 ?? ?? ?? $4.88 ??
(3)
Social Security = 577.15(0.042) = 24.24

Medicare = 577.15(0.0145) = 8.37
Withholding tax = 10.00
Other deductions = 4.88
Total deductions = 47.49
Net earnings = 577.15 -
47.49 = 529.66
PRACTICE TEST
22. How much SUTA tax must Anaston, Inc., pay to

the state for a parttime employee who earns
$5,290? The SUTA tax rate is 5.4% of the
wages.
5,290(0.054) = 285.66

رياضيات ١٠

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

رياضيات ١٠

Uploaded by

Copyright:

Available Formats

CHAPTER 10

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

 Find the gross pay per paycheck based on salary.

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

Nicole earns $36,000 a year and

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

Find the gross earnings for:

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

 Gross earnings (gross pay)

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

 Hourly rate or hourly wage

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

Theresa worked 45 hours last week. If her hourly

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

The regular hourly rate in the production

 Marcus, who worked 48 hours

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

 Many employers motivate employees to produce

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Jorge assembles microchip boards

:Rates are as follows

?If he assembles 317 boards how much will he earn

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

 From 1-100 $1.32 per board

 100 x $1.32 = $132.00

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

Jillian gets paid a differential piece rate for

From 1-100: each $0.47

?What were her earnings

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

Marisa is a restaurant supplies salesperson and

.to find her earningsP = R x BUse the formula:

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

Melanie Brooks works for a cosmetics company and

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

1. Find the gross earnings for the employee. A regular

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

2. Find the gross earnings for the employee. A regular

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

3. Varonia Reed is paid a weekly salary of $1,036.

4. Glenda Chaille worked 27 hours in one week at

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

5. Ronald James is paid 1.5 times his hourly wage for

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

Patsy Hilliard is paid 5% commission on sales of .6

Find the gross earnings if Juanita Wilson earns .7

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

 Find federal tax withholding per paycheck using

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

 Allowable adjustments to the gross income such as

Tax-free or tax-deferred benefits?

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹

Using the tax tables in your text, find See pages

.Copyright © 2014, 2010, 2007 Pearson Education, Inc ›#‹