Computing the payroll expense of an employer [10 min]Return to the Gloria Traxell payroll...

Computing the payroll expense of an employer [10 min]

Return to the Gloria Traxell payroll situation in Short Exercise. Traxell’s employer, College of San Bernardino, pays all the standard payroll taxes plus benefits for the employee retirement plan (5% of total pay), health insurance ($113 per employee per month), and disability insurance ($8 per employee per month).

Requirement

1. Compute College of San Bernardino’s total expense of employing Gloria Traxell for the 48 hours that she worked during the first week of February. Carry amounts to the nearest cent.

Computing an employee’s total pay [10 min]

Gloria Traxell is paid $800 for a 40-hour workweek and time-and-a-half for hours above 40.

Requirements

1. Compute Traxell’s gross pay for working 48 hours during the first week of February. Carry amounts to the nearest cent.

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2. Traxell is single, and her income tax withholding is 10% of total pay. Traxell’s only payroll deductions are payroll taxes. Compute Traxell’s net (take-home) pay for the week. Use a 7.65% FICA tax rate, and carry amounts to the nearest cent.