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
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%