# Assessment 7c – Practical Problem 5-14a

Topics: Employment, Tax, Federal Insurance Contributions Act tax Pages: 3 (541 words) Published: January 10, 2012
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

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...