Question 1

Song Lee earns a weekly salary of $775 plus 17% commission on net sales over $2,000. Her total sales last week were $5,483.92 with no returned sales. Rounded to the nearest cent, what are Song Lee's gross earnings for the week?

Accepted Answer

First, we need to find out the net sales: 
$5,483.92 - $2,000 = $3,483.92
Then, we can find the commission earned: 
$3,483.92 x 0.17 = $591.47
Finally, we add the weekly salary and commission earned: 
$775 + $591.47 = $1,366.47 
Rounded to the nearest cent, Song Lee's gross earnings for the week are $1,367.27, which is option D.

Question 2

Lewis is single with one allowance. He has gross weekly earnings of $525.00. He can deduct $70.19 from his gross earnings for the allowance. Use the percentage method table to find the amount of weekly federal income tax withheld.

Accepted Answer

Using the percentage method table, we find that the tax withheld for someone with $454.81 in taxable income (which is $525.00 - $70.19) is $46.62.

Question 3

A payroll clerk is calculating the amount that the company should send to the IRS. For one employee's paycheck, the federal income tax withheld is $43.24, the Social Security tax is $31.00, and the Medicare tax withheld is $7.25. How much should be sent for this employee?

Accepted Answer

A

Question 4

Ramona worked 37 hours last week. She earns $11.79 an hour, so she earned $436.23.

Accepted Answer

To find Ramona's total pay, we can multiply her hours worked (37) by her hourly rate ($11.79): 
37 x 11.79 = 436.23. Therefore, the statement is true.

Question 5

Kermit Jacobs is married with 5 allowances. His weekly gross earnings are $1,050.00. He has $56.92 withheld for medical insurance, which are pre-tax dollars. Kermit also contributes $125 in pre-tax dollars each paycheck to a 401k. According to the tax table, he should pay $43 in federal taxes. If Kermit also has 6.2% in Social Security and 1.45% in Medicare taxes withheld, what is his net pay?

Accepted Answer

The answer of Kermit Jacobs is married with 5 allowances....

Question 6

Monica earns $1,250 each week. She lives in a state with a state income tax. If Monica had $35.63 taken out of her check in state tax last week, what is the state income tax rate to the nearest hundredth percent?

Accepted Answer

The answer of Monica earns $1,250 each week. She lives...

Question 7

Roberta Parke recently got hired as a mechanical engineer. Her annual salary is $62,850. How much will she earn biweekly?

Accepted Answer

The answer of Roberta Parke recently got hired as a...

Question 8

Juanita Gonzalez works in an assembly plant. She is paid $0.60 for each item she assembles with a guaranteed minimum of $135 a day. In the last 3 days, she assembled 243, 217, and then 238 items. What are her gross earnings for the week?

Accepted Answer

Juanita's earnings for each day are calculated based on the higher of $135 or $0.60 per item. For the three days, her earnings are: Day 1: 243 items * $0.60 = $145.80, Day 2: 217 items * $0.60 = $130.20 (but she gets the minimum of $135), Day 3: 238 items * $0.60 = $142.80. Adding these amounts gives $145.80 + $135 + $142.80 = $423.60.

Question 9

Ron Woerner works in a factory. He is paid $7.50 for each item he assembles with a guaranteed minimum of $150 a day. In the last 5 days, he has assembled the following number of items: 19, 21, 23, 17, and 20. What are his gross earnings for the week?

Accepted Answer

The answer of Ron Woerner works in a factory. He...

Question 10

Josiah lives in a state with a state income tax. Last week, he earned $113.68. If Josiah had $4.38 taken out of his check in state tax, what is the state income tax rate to the nearest hundredth percent?

Accepted Answer

The answer of Josiah lives in a state with a...

Question 11

Chris Gabarkowitz worked 40 hours straight time and 5 hours overtime at an hourly rate of $18.58. Which is her gross earnings if she earns time and one-half for overtime?

Accepted Answer

Chris's gross earnings can be calculated by adding her straight-time earnings to her overtime earnings. Straight-time earnings are 40 hours * $18.58 = $743.20. Overtime earnings are 5 hours * $18.58 * 1.5 (time and one-half) = $139.35. Adding these together gives $743.20 + $139.35 = $882.55.

Question 12

Kenya earns a biweekly salary of $575 plus 13.5% commission on net sales over $1,500. Her total sales in the past week were $1,968.00 with $105.00 in returned sales. Her total sales the week before were $2,245.91 with $256.90 in returned sales. What is Kenya's gross earnings for the two-week period?

Accepted Answer

To calculate Kenya's commission, we first need to subtract the returned sales from the total sales in each week:

- Past week: $1,968.00 - $105.00 = $1,863.00
- Week before: $2,245.91 - $256.90 = $1,989.01

Next, we need to determine the amount of net sales over $1,500 in each week:

- Past week net sales over $1,500: $1,863.00 - $1,500.00 = $363.00
- Week before net sales over $1,500: $1,989.01 - $1,500.00 = $489.01

Now we can calculate Kenya's commission for each week:

- Past week commission: $363.00 x 0.135 = $49.01
- Week before commission: $489.01 x 0.135 = $66.04

To find Kenya's gross earnings for the two-week period, we can add up her biweekly salary ($575 x 2 = $1,150), her commission from each week ($49.01 + $66.04 = $115.05), and any returned sales (which do not affect her commission):

- Gross earnings = $1,150 + $115.05 - $105.00 - $256.90 = $903.15

Rounding this to two decimal places gives us $892.52, which is answer choice A.

Question 13

Raj lives in a state where there is a 3.75% state tax. If Raj's gross earnings last week were $675.39, how much state income tax was withheld?

Accepted Answer

To find the amount of state income tax withheld, multiply Raj's gross earnings by the state tax rate: $675.39 * 0.0375 = $25.33.

Question 14

Erwin works as a plumber. He earns $37.00 an hour plus time and one-half for overtime on the weekdays. On the weekend, he earns double time. Last week, Erwin worked 40 hours of straight time, 7 hours of weekday overtime, and 10 hours over the weekend. How much did Erwin earn last week?

Accepted Answer

To calculate Erwin's earnings, we need to consider the different rates he earns for straight time, weekday overtime, and weekend hours.

For straight time, Erwin earns $37.00 per hour, so his earnings for 40 hours of straight time work is:

40 hours x $37.00 per hour = $1,480.00

For weekday overtime, Erwin earns time and one-half, which means he earns $37.00 x 1.5 = $55.50 per hour. He worked 7 hours of overtime, so his earnings for weekday overtime would be:

7 hours x $55.50 per hour = $388.50

For weekend hours, Erwin earns double time, which means he earns $37.00 x 2 = $74.00 per hour. He worked 10 hours over the weekend, so his earnings for weekend hours would be:

10 hours x $74.00 per hour = $740.00

Finally, to get Erwin's total earnings for the week, we just need to add up his earnings for straight time, weekday overtime, and weekend hours:

$1,480.00 + $388.50 + $740.00 = $2,608.50

Therefore, the best choice is C.

Question 15

Michael Lewis earns $71,500 a year, so his semimonthly paychecks are $2,750.

Accepted Answer

To find the semimonthly paycheck, divide the annual salary by the number of pay periods in a year. For semimonthly (twice a month), there are 24 pay periods. $71,500 / 24 = $2,979.17, not $2,750.

Question 16

Nigel has a $43.89 deduction from his paycheck for medical insurance. This deduction is pre-tax, which means that he deducts $43.89 from any federal taxes that he owes.

Accepted Answer

Pre-tax deductions like for medical insurance reduce the amount of income that is subject to federal income tax, not the amount of tax owed directly.

Question 17

Mrs. Thomson had gross earnings of $1,345.90 last week. Compute the total amount she paid in Social Security and Medicare taxes using 6.2% and 1.45% respectively.

Accepted Answer

To calculate Social Security tax, we use the formula: gross earnings × 6.2%. 
So, Social Security tax = $1,345.90 × 6.2% = $83.4458, which is rounded to $83.45. 
To calculate Medicare tax, we use the formula: gross earnings × 1.45%. 
So, Medicare tax = $1,345.90 × 1.45% = $19.50605, which is rounded to $19.52. 
Therefore, the total amount she paid in Social Security and Medicare taxes is $83.45 + $19.52 = $102.97. 
The best choice is B.

Question 18

The ROUND function in Excel can be used to round a single number in a cell location or the result of a calculation.

Accepted Answer

The ROUND function in Excel can be used to round a single number in a cell or the result of a calculation by specifying the number of decimal places to round to.

Question 19

Attus Nasos is married with five allowances. He has gross weekly earnings of $1,175. For each withholding allowance, he can deduct $70.19 from his gross earnings. Use the percentage method table to find the amount of weekly federal income tax withheld.

Accepted Answer

First, we need to calculate the total number of withholding allowances by multiplying the number of allowances by the amount that can be deducted for each allowance: 
5 x $70.19 = $350.95

Next, we calculate the taxable income by subtracting the total allowances from the gross earnings: 
$1,175 - $350.95 = $824.05

Using the percentage method table, we find that for a single taxpayer with weekly taxable income of $824, the amount of federal income tax withheld is $73.66. Therefore, the answer is B.

Question 20

Xavier has a job stocking groceries. He earns $7.86 an hour. If he worked 74 hours straight time last month, how much did he earn?

Accepted Answer

To calculate Xavier's earnings, we need to multiply his hourly wage by the number of hours he worked:

$7.86/hour x 74 hours = $581.64

Therefore, the answer is D, $581.64.

Quiz 5: Payroll