Business Mathematics 13th Edition by Gary Clendenen,Stanley Salzman

Exercise 2

PAYROLL AT STARBUCKS
www.ssa.gov
Facts:
• 1935: Social Security Act passed
• 1937: First Social Security taxes collected
• 1965: Medicare established
• 2013: More than 50 million people receive Social Security payments
• 2013: More than 50 million people receive Medicare benefits
Sarah Brynski is busy running a Starbucks and thinking about inventory, making sure the store looks great, ensuring good service, hiring good people, motivating employees, maintaining inventories, calculating wages, deducting correct amounts for the various taxes, and getting the payroll done on time every week. She is also interested in finding ways to increase sales since part of her income is based on sales. Overtime is paid for more than 40 hours a week, the state tax rate is 3.07% and the state disability income rate (SDI) is 1%.
Assume Brynski receives a base salary of $450 per week plus a commission of 6% of sales over $5000. Do her weekly payroll for a week with $8432 in sales.