61) From the following information, complete the chart for gross earnings for the week. Assume an overtime rate of time and a half over 40 hours.


Hourly RateNo. of HoursGross Earnings


Kurt Nelson$1441________

Sabrina Schmitz$1639________

Kirk Seifker$1843________


62) List the purposes of Federal Insurance Contributions Act.

63) What is the purpose of the Fair Labor Standards Act?


64) The College Credit Card Services has a significant increase in business each spring due to a large increase in new applicants from graduating college students. Subsequently, each spring 40 temporary workers are hired for a week period, working 40 hours per week at $10 per hour and then they are laid off. College’s permanent employment total is 350 workers. Because of these yearly layoffs, College’s state unemployment merit tax rate is 9%. If the number of layoffs could be reduced, the merit tax rate could be reduced to 4.1%.


As the payroll specialist for College, you have been asked to evaluate the following and determine the pros/cons of each decision:

1. Should College stop hiring temporary employees and ask its full-time workers to work overtime to handle the extra load?

2. Should College get its temporary employees from a temporary employment agency and therefore not be subject to the extra taxes?

65) An employee earns $32 per hour.

She worked 50 hours the third week of January (assume time and a half for overtime)

Calculate the net pay.

The business is involved in interstate commerce.

Federal Income Tax rate = 20%

State Income Tax rate = 5%

FICA rate OASDI = 6.2% and Medicare = 1.45%

FUTA rate = .8%

SUTA rate = 5.6%

$ ________




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