Topic Test

Question 1

Hank is a salaried plus commission employee. Hank has a monthly salary of $2,500 and earns 5.5% commission on all sales. Which of the following expressions represents Hank's total earnings in one month if he has $6,300 in sales?

Revolt · Accepted Answer

2,500 + (0.055)(6,300)

Question 2

The following federal tax table is for biweekly earnings of a single person. How will the federal tax affect a biweekly pay of $740 for a single person claiming 1 exemption?

Revolt · Accepted Answer

It decreases the biweekly pay by $65.

Question 3

MaryLiz claims single having no exemptions. Her state tax deduction is 18% of her federal tax contribution. Calculate the amount of state tax MaryLiz owes if her gross pay for two weeks is $800. The following federal tax table is for biweekly earnings of a single person.

Revolt · Accepted Answer

$16.56

Question 4

Tyra makes $21.40 per hour at her job for the first 40 hours and $32.10 for anything over 40 hours. If Tyra typically works 45 hours per week, how much does she earn?

Revolt · Accepted Answer

$1,016.50

Question 5

The table below shows the typical hours worked by employees at a company. A new employee is offered an annual salary of $37,000. Hourly employees get paid $14 per hour, but get $21 per hour for each hour over 40 hours. Should the new employee choose the salaried or hourly pay? Explain your reasoning.Sun.Mon.Tues.Wed.Thurs.Fri.Sat.08.59.57.588.54

Revolt · Accepted Answer

The new employee should choose the salaried pay. The hourly job would pay about $36,218 per year based on the hours shown, while the salary pays $37,000 per year. The salary is also more predictable.

Question 6

An employee has an annual salary of $48,700. They receive $1,530 in health insurance and $2,810 in paid time off per year. They drive their personal vehicle for work which costs them $500 per month, but the company reimburses them $0.53 per mile for the total work miles driven. If the employee drives 9,000 miles for work for the year, what will be their total employment compensation?

Revolt · Accepted Answer

$51,810

Question 7

Bonnie claims single with 2 federal withholding allowances, and contributes state tax of 20% of her federal tax. Below is a copy of Bonnie's biweekly statement of earnings. Bonnie knows that her gross earnings and federal tax are correct, but she thinks that her net pay is not correct. EarningsDeductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH.NET PAY4/15$760.00 $50.00 $47.12 $110.20 $10.00$542.68Using the fact that Social Security is 6.2% and Medicare is 1.45% of gross pay, explain why the given net pay is not correct. Determine how the error can be corrected, and what the net pay should be.

Revolt · Accepted Answer

The error is that Medicare tax was listed as $110.20 instead of the correct amount of $11.02. Social Security is correct at $47.12, and state tax is correct at $10.00 (20% of $50.00). Medicare was overwithheld by $99.18, so the net pay should increase from $542.68 to $641.86.

Question 8

KaiLynn has total job benefits of $41,000 per year in her sales job. She pays $63 each month for a cell phone for work. She is also required to purchase samples kits which cost $235 each. If KaiLynn paid for 4 samples kits last year, what was her total employment compensation?

Revolt · Accepted Answer

$39,304

Question 9

Phillipe has two job offers as given below and really has no preference for either company. Compare the total compensations for the job offers and explain which job you think Phillipe should accept and why. Company A Gross pay $62,000 Medical insurance $3,400 Paid time off $8,000 Retirement $2,700 Job expenses $800 Company B Gross pay $60,000 25% of gross pay in employee benefits

Revolt · Accepted Answer

The total employment compensation for Company A is $75,300 and for Company B it is $75,000. If he chooses the job based on total employment compensation only, then he should choose Company A. Note that the $800 job expense is a reduction in the total compensation for Company A. Also, since there is only $300 difference in total compensation, he may want to choose based on other criteria, such as how many days vacation per year or how far it is to commute ot work.

Question 10

Martha earned a gross pay of $1,215.60 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social security tax deducted from Martha’s gross pay.

Revolt · Accepted Answer

$75.37

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