Assessment 7c – Practical Problem 5-14a
Lesson 7
Assessment 7C – Practical Problem 5-14A
Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following people since the beginning of the year.
V. Hoffman (general office worker)………………………………………………………. $1,700 per month
A. Drugan (salesperson)………………………………………………………………………. $15,000 per year
G. Beiter (stock clerk)……………………………………………………………………………. $180 per week
S. Egan (delivery person)……………………………………………………………………… $220 per week
B. Lin (cleaning and maintenance, part-time)………………………………………. $160 per week
Grady and Monroe are each paid a weekly salary allowance of $950. The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 19, 2010:
a. Amount of FICA taxes (OASDI and HI) to be withheld from the earnings of each person. (Refer to Chapter 3.)
OASDI HI
M. Grady……………………………………………….. $_____0.00_______ $_____0.00_____
P. Monroe……………………………………………… $ ____ 0.00_______ $_____0.00_____
V. Hoffman…………………………………….……… $____24.32_______ $ _____5.69_____
A. Dugan……………………………………..………… $____17.88_______ $_____4.18______
G. Beiter……………………………………..………… $_____11.16______ $ _____2.61______
S. Egan……………………………………..…………… $_____13.64______ $_____3.19______
B. Lin…………………………………...………………… $______9.92______ $_____2.32______
b. Amount of the employer’s FICA taxes for the weekly payroll? OASDI $76.92 HI $17.99 Total FICA = $94.91
c. Amount of state unemployment contributions for the weekly payroll? $10.54
d. Amount of the net FUTA tax on the payroll? $1.28
e. Total amount of
Assessment 7C – Practical Problem 5-14A
Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following people since the beginning of the year.
V. Hoffman (general office worker)………………………………………………………. $1,700 per month
A. Drugan (salesperson)………………………………………………………………………. $15,000 per year
G. Beiter (stock clerk)……………………………………………………………………………. $180 per week
S. Egan (delivery person)……………………………………………………………………… $220 per week
B. Lin (cleaning and maintenance, part-time)………………………………………. $160 per week
Grady and Monroe are each paid a weekly salary allowance of $950. The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 19, 2010:
a. Amount of FICA taxes (OASDI and HI) to be withheld from the earnings of each person. (Refer to Chapter 3.)
OASDI HI
M. Grady……………………………………………….. $_____0.00_______ $_____0.00_____
P. Monroe……………………………………………… $ ____ 0.00_______ $_____0.00_____
V. Hoffman…………………………………….……… $____24.32_______ $ _____5.69_____
A. Dugan……………………………………..………… $____17.88_______ $_____4.18______
G. Beiter……………………………………..………… $_____11.16______ $ _____2.61______
S. Egan……………………………………..…………… $_____13.64______ $_____3.19______
B. Lin…………………………………...………………… $______9.92______ $_____2.32______
b. Amount of the employer’s FICA taxes for the weekly payroll? OASDI $76.92 HI $17.99 Total FICA = $94.91
c. Amount of state unemployment contributions for the weekly payroll? $10.54
d. Amount of the net FUTA tax on the payroll? $1.28
e. Total amount of