Name Worked Rate Week Status Withholdi Biggs, A Cool, Ray Dell, Don Evans, Pedro
ID: 2512755 • Letter: N
Question
Name Worked Rate Week Status Withholdi Biggs, A Cool, Ray Dell, Don Evans, Pedro Frey, Belle Grayson, Nick Roberts, John Wayne, David 40 $11.65$21,536.00 Single 40 $11.50 $21,988.00 ingle 40 $11.95$21,160.00 Married 49 $34.00 127,280.00 Married 22$10.50 40 $11.00 45 $14.25 $25,690.00 Single 18 $10.75 $5,096.00 Married $21,040.00 Married $5,855.00 Married Employees are paid weekly and are paid time-and-a-half for work in excess of forty hours per week. Taxable earnings for Social Security are based on the first $128,700. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $7,000. State unemployment tax rate is 5.4% and federal unemployment tax rate is .696.Explanation / Answer
Federal unemployment tax is a type of tax which is collected by the employer for the benifit of state unemployment agencies or for unemployment insurance. Here the tax rate is 6%(Here it is given 0.6% but normal rate is 6%, so this question is solved by 6%) and it is based on first $7000. This means that for the every income more than or equal to $7000 earned by the employee, employer will have to pay 6% of $7000 atleast.
Below is the given calculations for the federal unemployment tax rate:
Working:
(1) It is nil tax for Frey Belle because his income is not exceeding and for the taxability atleast 7000 is needed. Therefore, his income is not chargeable to tax.
(2) As the Tax is of 6% but the employer gets the deduction of 5.4% if he has paid state unemployment tax of 5.4%.
Name Total Earnings(a) Based on first(b) Taxable income of employees for employer (c=a or b, whichever is higher) Tax @6%(d) Deduction till 5.4% of 70002(e) Amount Taxable (f=d-e) Biggs,Al 22002 7000 7000 420 378 42 Cool, ray 22448 7000 7000 420 378 42 Dell Don 21638 7000 7000 420 378 42 Evans, Pedro 129099 7000 7000 420 378 42 Frey, Belle 6327 7000 6327 nil1 - - Grayson nick 21480 7000 7000 420 378 42 Roberts, john 26366.88 7000 7000 420 378 42 Wayne david 7048.50 7000 7000 420 378 42 Total 294Related Questions
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