Question

1. 9points The following information is for employee Keegan Spencer for the week ended March 15 Total hours worked: 48.5 Rate: $16 per hour, with 1.5 times that rate for all hours in excess of 40 Federal income tax withheld: 24% State income tax withheld: 3.4% United Way deduction: $50 Tax rates: Social security: 6.2% on employee earnings; paid by both employer and employee Medicare tax: 1.45% on employee earnings; paid by both employer and employee State unemployment: 5.2% on employee earnings; paid by employer Federal unemployment: 0.8% on employee earnings; paid by employer (a) Determine (1) total earnings, (2) total deductions, and (3) cash paid. Show all calculations. Round all amounts to the nearest penny Determine (1) the amount of each payroll tax to be paid (employer's responsibility) and (2) the total amount of taxes to be paid (employer's responsibility) by the employer related to the earnings of Keegan Spencer for the week ended March 15 Show all calculations. Round all amounts to the nearest penny. (b)

Answer 1

a)

Earnings
Regular (40*16)	640
Overtime (8.5Hours *16*1.5 )	204
Total earnings		844
Deductions
Federal Income taxes withheld (844*24%)	202.56
State income taxes withheld (844*3.4%)	28.70
United way deduction	50
Social security taxes withheld (844*6.2%)	52.33
Medicare taxes   (844*1.45%)	12.24	`
Total deductions		(345.83)
Cash paid [A-B]		498.17

B)

Social security taxes withheld (844*6.2%)	52.33
Medicare taxes   (844*1.45%)	12.24
State Unemployment taxes (844*5.2%)	43.89
Federal unemployment taxes (844*.8%)	6.75
Total payroll taxes to be paid by employer	115.21