In an effort to keep low-wage workers' salaries commensurate with the cost of living, a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation. You are the accountant for a company that owns a chain of 14 fast food restaurants in a state which adjusts the minimum wage for inflation. Each restaurant employs 25 workers, each averaging 20 hours per week at th current federal minimum wage, $7.25 per hour. (a) How many hours at minimum wage are paid out each week by the company? 7000 hr

In an effort to keep low-wage workers' salaries commensurate with the cost of living, a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation. You are the accountant for a company that owns a chain of 14 fast food restaurants in a state which adjusts the minimum wage for inflation. Each restaurant employs 25 workers, each averaging 20 hours per week at th current federal minimum wage, $7.25 per hour. (a) How many hours at minimum wage are paid out each week by the company? 7000 hr

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 2E

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In an effort to keep low-wage workers' salaries commensurate with the cost of living, a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation. You are the accountant for a company that owns a chain of 14 fast food restaurants in a state which adjusts the minimum wage for inflation. Each restaurant employs 25 workers, each averaging 20 hours per week at the current federal minimum wage, $7.25 per hour. (a) How many hours at minimum wage are paid out each week by the company? hr (b) At the current rate of $7.25 per hour, what is the amount (in $) of the weekly "minimum wage" portion of the restaurant's payroll? $ (c) If the inflation rate this year is 0.7%, calculate the "adjusted" minimum wage rate (in $ per hour) to be paid next year. (Round your answer to two decimal places.) $ per hour (d) How much in "additional wages" will the company have to pay out next year at the adjusted rate (in $)? (Round your answer to the…
In an effort to keep low-wage workers' salaries commensurate with the cost of living, a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation. You are the accountant for a company that owns a chain of 12 fast food restaurants in a state which adjusts the minimum wage for inflation. Each restaurant employs 25 workers, each averaging 20 hours per week at the current federal minimum wage, $7.25 per hour. (a) How many hours at minimum wage are paid out each week by the company? (b) At the current rate of $7.25 per hour, what is the amount (in $) of the weekly "minimum wage" portion of the restaurant's payroll? (c) If the inflation rate this year is 0.7%, calculate the "adjusted" minimum wage rate (in $ per hour) to be paid next year. (Round your answer to two decimal places.) (d) How much in "additional wages" will the company have to pay out next year at the adjusted rate (in $)? (Round your answer to the nearest dollar.)
So the question in my discussion board is " Wehn employees of County Bank are summoned to serve on jury duty, the firm pays its workers the difference between their regular wages and the amount received for jury duty. One such employee has been receiving $365 per week. She just completed a five-day week of jury duty, for which she was paid $65 ($9 per day plus 20 cents per mile from her house to the courthouse, a 20- mile round trip). How much of the employee's earning are subject to FICA tax?" Im confused a bit... the difference in the regular pay and jury duty pay is 365-65=300 right? so does that mean just 300 is subject to FICA tax but in my book it says jury duty pay is another common type of payment that is considered a wage under FICA so would the full 365 be subject to FICA?
Many small businesses have to squeeze down costs any way they can just to survive. One way many businesses do this is by hiring workers as independent contractors rather than as regular employees. Unlike rules for regular employees, a business does not have to pay social security (FICA) taxes and unemployment insurance payments for independent contractors. Similarly, it does not have to withhold federal, state, or local income taxes or the employee’s share of FICA taxes. The IRS has a 20-factor test determining whether a worker should be considered an employee or a contractor, but many businesses ignore those rules or interpret them loosely in their favor. When workers are treated as independent contractors, they do not get a W-2 form at tax time (they geta 1099 instead), they do not have any income taxes withheld, and they find themselves subject to self-employment taxes, by which they bear the brunt of both the employees and the employer’s share of FICA taxes. Requirements…
Over the past two years, Kermit Stone, The comptroller of Hilton Company, Has been concerned that the company has been paying a large amount of money for state unemployment taxes. On reviewing the "unemployment file" with the head accountant, Deborah Martha, he learns that the companies tax rate is near the top of the range of the states experience-rating system. After calling the local unemployment office, stone realizes that the turnover of employees at Hilton company has had an adverse effect on the companies tax rates. In addition, after consulting with Murtha, he discovers that the eligibility reports that come from the state unemployment office or just signed and sent back to the state without any review. The eligibility reports or notices that an ex employee has filed a claim for unemployment benefits. By signing these reports "blindly", The company, in effect, tells the state that the employee is eligible for the benefits. Any benefits paid or charged by the state against…
Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employedthe following persons since the beginning of the year:V. Hoffman (general office worker)......................... $1,700 per monthA. Drugan (saleswoman)......................................... $15,000 per yearG. Beiter (stock clerk).............................................. $180 per weekS. Egan (deliveryman).............................................. $220 per weekB. Lin (cleaning and maintenance, part-time) .......... $160 per weekGrady and Monroe are each paid a weekly salary allowance of $950.The doll shop is located in a state that requires unemployment compensation contributions of employers of one or moreindividuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Computeeach of the following amounts based upon the 41st weekly payroll period for the week ending October 11, 2019:a. Amount of FICA taxes (OASDI and HI)…
Deep Mouse Designs has 14 employees within Denver City and County. The employees earned $9.80 per hour and worked 160 hours each during the month. The employer must remit $4.00 per month per employee who earns more than $500 per month. Additionally, employees who earn more than $500 per month must have $5.75 withheld from their pay. Required: What is the employee and employer Occupational Privilege Tax for these employees? (Round your answers to 2 decimal places.)
An employee's rate of pay is $36 per hour, with time-and-a-half for all hours worked in excess of 40 per week. The employee worked 45 hours during the week. The amount of the employee's gross pay for the week is: Group of answer choices $1,710 $1,800 $1,440 $1,620 Which of the following taxes are employers usually not required to withhold from employees earnings? Group of answer choices Federal income tax Medicare tax Federal unemployment compensation tax State and local income tax A business issued a $5,000, 60-day note to a supplier, which discounted the note at 12%. The proceeds are: Group of answer choices $5,100 $4,400 $4,900 A bond that gives the bondholder a right to exchange the bond for other securities under certain conditions is called a: Group of answer choices convertible bond sinking bond term bond debenture bond If the market rate of interest is less than the coupon rate of interest, the bonds will sell for…
Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year: V. Hoffman (general office worker) $1,700 per month A. Drugan (saleswoman) $15,000 per year G. Beiter (stock clerk) $180 per week S. Egan (deliveryman) $220 per week B. Lin (cleaning and maintenance, part-time) $160 per week Grady and Monroe are each paid a weekly salary allowance of $950. The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 11. Round your intermediate calculations and final answers to the nearest cent. Use rounded answers in subsequent computations. If an amount is zero, enter "0". a. Amount of FICA taxes…
Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year: V. Hoffman (general office worker) $1,700 per month A. Drugan (saleswoman) $15,000 per year G. Beiter (stock clerk) $180 per week S. Egan (deliveryman) $220 per week B. Lin (cleaning and maintenance, part-time) $160 per week Grady and Monroe are each paid a weekly salary allowance of $950. The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 11. Round your intermediate calculations and final answers to the nearest cent. Use rounded answers in subsequent computations. If an amount is zero, enter "0". a. Amount of FICA taxes…
Howard Murphy is the ower of Stormy Banana Films in West Hollywood, California. Stormy Banana Films had 15 employees with total annual wages of $230,750 (no one exceesed the Medicare tax surcharge or Social Security cap.). The FUTA rate for California in 2019 is 2.2 percent because it is a credit reduction state. Stormy Banana Films has a SUTA rate of 3.2 percent for 2019 with wage base of $7,000. Require: Compute the following employer taxes. (Round your answer to 2 decimal places.) Soical security tax Medicare tax FUTA SUTA
The Fair Labor Standard Act (FLSA) was passed in 1938 as part of President Roosevelt’s New Deal. The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Joe is paid $25 an hour. During the Week of February 7-13, he works 48 hours, and receives a one-time non-discretionary bonus of $500 dollars. Under the FLSA what is his gross (before taxes and deductions) pay for that week. HINT: You must calculate his “regular rate of pay”.