Question : 179.Jim Janney paid $6 per hour, plus double-time for hours : 1244467

 

179.Jim Janney is paid $6 per hour, plus double-time for hours worked on weekends. During the two-week period ending February 5, Janney worked 70 hours on weekdays and 8 hours on weekends. Social security taxes are 6.2 percent, Medicare taxes are 1.45 percent, $65 is withheld for federal taxes, $18 is withheld for state income taxes, and $24 is withheld for charities. In addition, Janney’s employer must pay social security taxes of 6.2 percent, Medicare taxes of 1.45 percent, federal unemployment taxes of 0.8 percent, and state unemployment taxes of 5.4 percent. Calculate (a) Janney’s gross earnings, (b) Janney’s net pay, (c) the employer’s payroll taxes expense, and (d) the total cost of employing Janney for the two-week period. Round all amounts to the nearest penny.

 

 

180.The following totals for the month of March were taken from the payroll register of the Foothill Company:

 

Salaries (all subject to social security and Medicare taxes)

$14,000

Federal income taxes withheld

3,500

Medical insurance deductions

700

Life insurance deductions

400

Salaries subject to unemployment taxes

11,000

Medicare tax rate

1.45%

Social security tax rate

6.2%

 

Prepare entries in journal form without explanations to record the following. Round amounts to the nearest dollar.

 

a. Monthly payroll

b. Accrual of employer’s payroll taxes (assuming the social security and Medicare taxes to be equal to the amount for employees, a FUTA tax of 0.8 percent, and a state unemployment tax of 5.4 percent).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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181.Calculate answers to the following questions using present value tables.

 

a. If an accumulation of $4,000 is desired at the end of four years, what amount must be deposited now to accomplish that goal, assuming 12 percent interest compounded annually?

b. What is the present value of receiving $150 at the end of each year for 4 years, assuming 9 percent interest compounded annually?

c. What amount must be deposited at the bank today to grow to $10,000 in five years, assuming 14 percent interest compounded semiannually?

d. Liz Astor would like to make a lump-sum deposit today so that she can withdraw $10,000 at the end of each year for the next three years. Assuming a 9 percent interest rate, what should she invest today?