Problem -
The following information is for employee Ella Dodd for the week ended March 15.
Total hours worked: 48
Rate: $15 per hour, with double time for all hours in excess of 40 Federal income tax withheld: $200
United Fund deduction: $50
Cumulative earnings prior to current week: $6,400 Tax rates:
Social security: 6% on maximum earnings of $120,000. Medicare tax: 1.5% on all earnings.
State unemployment: 3.4% on maximum earnings of $7,000; on employer Federal unemployment: 0.8% on maximum earnings of $7,000; on employer
(a) Determine (1) total earnings, (2) total deductions, and (3) cash paid.
(b) Determine each of the employer's payroll taxes related to the earnings of Ella Dodd for the week ended March 15.