7.2 Learning Objective 7-2
1) An employee has gross earnings of $1,000 with withholdings of 6.2% FICA-OASDI, 1.45 % FICA-Medicare, $50 for federal income tax and $10 for state income tax. How much is the gross pay?
A) $1000.00
B) $781.15
C) $771.15
D) $791.15
2) An employee has gross earnings of $1,000 with withholdings of 6.2% FICA-OASDI, 1.45% FICA-Medicare, $50 for federal income tax and $10 for state income tax. How much is the net pay?
A) $900.00
B) $781.15
C) $863.50
D) $791.15
3) Ocean’s Auction House’s payroll for April includes the following data:
Gross earnings
$2,900
Salaries subject to FICA:
6.2% OASDI
2,550
1.45% Medicare
3,000
Salaries subject to unemployment:
0.8% FUTA
2,000
2.0% SUTA
2,000
Other deductions include:
Federal income tax
500
State income tax
300
What is the gross pay?
A) $1,998.40
B) $1,942.40
C) $2,900.00
D) $2,798.40
4) Ocean’s Auction House’s payroll for April includes the following data:
Gross earnings
$3,000
Salaries subject to FICA:
6.2% OASDI
2,550
1.45% Medicare
3,000
Salaries subject to unemployment:
0.8% FUTA
2,000
2.0% SUTA
2,000
Other deductions include:
Federal income tax
500
State income tax
300
What is the net pay?
A) $1,998.40
B) $1,942.40
C) $3,000.00
D) $2,798.40
5) Ocean’s Auction House’s payroll for April includes the following data:
Gross earnings
$4,000
Salaries subject to FICA:
6.2% OASDI
2,550
1.45% Medicare
4,000
Salaries subject to unemployment:
0.8% FUTA
2,000
2.0% SUTA
2,000
Other deductions include:
Federal income tax
500
State income tax
300
What is the employer’s portion of the tax?
A) $1,072.10
B) $56.00
C) $272.10
D) $800.00
6) Ocean’s Auction House’s payroll for April includes the following data:
Gross earnings
$3,000
Salaries subject to FICA:
6.2% OASDI
2,550
1.45% Medicare
3,000
Salaries subject to unemployment:
0.8% FUTA
2,000
2.0% SUTA
2,000
Other deductions include:
Federal income tax
500
State income tax
300
What is the employee’s portion of the tax?
A) $1,057.60
B) $1,001.60
C) $257.60
D) $800.00
7) The payroll taxes the employer is responsible for are:
A) FICA-OASDI.
B) FICA-Medicare.
C) worker’s compensation.
D) All of the above are correct.
8) If the employee has $300 withheld from their check for FICA-OASDI, what is the amount that the employer would need to pay?
A) $300
B) $100
C) $0
D) $400
9) If the employee has $500 withheld from their check for federal income tax, what is the amount that the employer would need to pay for their portion of the federal income tax?
A) $500
B) $100
C) $0
D) $400
10) Unemployment taxes are:
A) based on wages paid to employees.
B) based employer’s payment history.
C) the same for all employers.
D) Both A and B are correct.
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