The Mathematics of Money

Copyright © 2008, The McGraw-Hill Companies, Inc.

Exercises 15.1 591

THE LOCALVILLE QUOTIDIEN NEWS

PRODUCTION AND DELIVERY DEPARTMENT

PAY PERIOD ENDING AUGUST 5

Exercise 18 Exercise 19 Exercise 20 Exercise 21 Exercise 22 Exercise 23

Employee Kentsman Chao Marini Comstock Jobe Wilden

Gross wages $1,075.93 $1,213.06 $1,195.08 $995.93 $1,302.91 $1,147.90

Pretax benefi ts $84.15 $84.15 $32.55 $0 $32.55 $32.55

Federal tax $38.73 $49.74 $50.79 $50.79 $84.69 $63.13

State tax $16.14 $18.20 $17.93 $14.94 $19.54 $17.22

FICA $72.58 $86.36 $88.93 $64.76 $92.70 $78.30

Retirement $43.04 $0 $0 $149.39 $58.63 $91.83

Other deductions $10 $0 $0 $0 $25 $300

Net pay

25. Calculate the benefi t payroll deduction for someone who selects single HMO coverage, single dental, 1  salary life
    insurance, basic disability, and no other benefi ts.


26. Calculate the benefi t payroll deduction for someone who selects employee plus children HMO, family dental, 5  salary
    life insurance, basic disability, and no other benefi ts.

G. Employer Taxes

27. Hank’s pay for the year is $52,403.92 after pretax benefi t deductions. Using the rates given in the text, calculate the
    FICA and unemployment taxes paid by his employer, based on Hank’s income.

H. Grab Bag

28–33. Calculate the (a) gross pay, (b) FICA, and (c) net pay for each of the hourly employees listed in the table

below.

STAN’S NORTHSIDE SYRACUSE STYLE PIZZA

HOURLY EMPLOYEES

PAY PERIOD ENDING FEBRUARY 17

Exercise 28 Exercise 29 Exercise 30 Exercise 31 Exercise 32 Exercise 33

Employee Mike P. Mike R. Lina Chelsea Sebastian Melissa

Hourly rate $9.25 $14.40 $12.30 $11.40 $10.65 $14.25

Week 1 hours 32 28 38 48 44 34

Week 2 hours 43 51 17 32 30 28

Gross wages a) a) a) a) a) a)

Benefi ts $0.00 $0.00 $0.00 $0 $84.44 $84.44

Federal tax $14.80 $20.16 $23.37 $27.36 $23.43 $24.23

State tax $3.70 $5.04 $5.84 $6.84 $5.86 $6.06

FICA b) b) b) b) b) b)

Other

deductions

$0 $75 $0 $0 $5 $0

Net pay c) c) c) c) c) c)