Reference no: EM132704352

Problem 1: An office employee is paid $15 an hour, with time and a half for all hours worked in excess of 40 during the week. This is his first paycheck of the year. Payroll data for the current week are as follows:

Hours worked - 44
Federal income tax withheld - $120
FICA tax rate - 6.50%
Medicare tax rate - 1.5%
Federal Unemployment tax rate - .8% of the first $7,000
State Unemployment tax rate - 5% of the first $9,000

How much is the employee's net pay?
1. $487.20
2. $474.78
3. $594.78
4. $514.80

Problem 2: An office employee is paid $15 an hour, with time and a half for all hours worked in excess of 40 during the week. This is his first paycheck of the year. Payroll data for the current week are as follows:
Hours worked - 44
Federal income tax withheld - $120
FICA tax rate - 6.50%
Medicare tax rate - 1.5%
Federal Unemployment tax rate - .8% of the first $7,000
State Unemployment tax rate - 5% of the first $9,000

How much is the employer's payroll tax expense for this employee?
1. $175.20
2. $91.08
3. $211.08
4. $95.22

Problem 3: A machine with a cost of $65,000 has an estimated residual value of $3,000 and an estimated life of 5 years or 15,000 hours. It is depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
1. $20,000
2. $20,667
3. $12,000
4. $8,000