Chapter 6 Assessment Review

Apply what you know:

1. How much must an employer pay an hourly employee for hours worked
beyond a regular workweek, assuming a regular rate of pay of $12 per
hour and 16 overtime hours? They will make $288 overtime. With
the regular pay, working an 40 hour workweek (regular
workweek) they will be making $768 dollars.
2. Using the payroll tax withholding tables in Figures 6.3 and 6.4, find the
state and federal withholding amounts for each of the following cases:
For a single person, one allowance, who made $109 last
week= State: 1
Federal: 0
For a single person, no allowance, who made $222 last
week= State: 12
Federal: 19
For a single person, 3 allowances, who made $291 last
week= State: 4
Federal: 4
3. Compute the self-employment taxes for a self-employed person who
made $40,000 this year. Separate the Social Security and Medicare
components. Social security: $4,960 Medicare: $1,160 Total:
$6,120
4. Visit the Social Security Administration online at www.ssa.gov and look
up the current-year Social Security changes. List the maximum taxable
earnings for Social Security and for Medicare, and the current tax rate
on earnings.
Social Security: 6.2 out of $117,000
Medicare: 1.45
Current tax rate: 7.65%
Make Academic connections: on employee with holding sheet (print out)
Solve problems and Explore Issues #s 10-14
10. Tatum Gibb works for a weekly paycheck. She is single and claims no
allowances. Last week she worked five days for a total of 44 hours. Her
regular rate of pay is $8.40 an hour. In addition to withholding for federal
income tax, state income tax (use Figures 6.3 and 6.4), Medicare, and Social
Security, Tatum also has insurance premiums of $16 a week withheld and

puts 6 percent of her gross pay into a retirement account. Compute her gross
pay, deductions, and net pay.
Regular pay: $336
Overtime: $50.40
Gross Pay: $386.40
Fed tax: $43
State Tax: $25
Social Security Tax: $23.96
Medicare: $5.60
Insurance: $16
Retirement: $23.18
Total Deductions: $136.74
Net Pay: $249.94
11. Bret Countryman receives a weekly paycheck. He is single and claims
one allowance. Last week, he worked five days for a total of 48 hours. His
regular rate of pay is $7.80 an hour. In addition to required deductions, he
has $10 a week deducted for his credit union account and gives $2 a week to
a charity fund. Compute his gross pay, deductions, and net pay.
Regular pay: $336
Overtime: $50.40
Gross pay: $386.40
Fed tax: $43
State tax: $25
Social security tax: $23.96
Medicare: $5.60
Insurance: $16
Retire: $23.18
Total deductions: $136.74
Net pay: $249.94
12. Alina Delgado works for herself. She estimates that her gross income this
year will be $44,000, and she will owe about $12,000 in federal taxes. How
much should she pay when she files each quarterly tax return? How much
Social Security tax and Medicare tax will she owe for the year? What is the
total amount of Alina's self-employment tax?
He will be making $374.40. With $10 taken away from his credit
union it will be $364.40. With $2 given to charity he will end up with
$362.40
13. Tone Chin works for an annual salary and is paid every two weeks. His
annual salary is $20,700. How much is his gross pay for each paycheck?
His paychecks will be around 796 every two weeks.

14. Andrea Ghani makes an annual salary of $31,200. However, she is paid
monthly. How much is her gross pay for each paycheck?
She will make 2,600 a month.