Payroll FPC/CCP - Problem Questions & Answers

Payroll FPC/CCP - Problem Questions & Answers B. $939.01 1st Week 2nd Week 920 x .50 = 460 835 x .50 = 417.50 460 / 47 = 9.79 417.50 / 46 = 9.08 47 - 40 = 7 46 - 40 = 6 .5 x 9.79 x 7 = 34.27 .5 x 9.08 x 6 = 27.24 460 + 34.27 = 494.27 417.50 + 27.24 = 444.74 1st Week 494.27 + 2nd Week 444.74 = 939.01 An employee is paid $0.50 per unit under a piece rate system. During the current biweekly pay period the employee worked 47 hours the first week and produced 920 units; and in the second week worked 46 hours producing 835 units. Calculate the employee's biweekly gross pay. A. $877.50 B. $939.01 C. $941.14 D. $1061.58 C. $601.60 1400 x .32 = 448.00 1.5 x .32 x 320 = 153.60 448.00 + 153.60 = 601.60 Under a piece rate system; a company's production workers receive $0.32 for each unit produced during regular hours and 1 1/2 times for any units produced during overtime hours. During the workweek an employee produced 1400 units in the 1st 40 hours and 320 in the next 5 hours. Calculate the employee's total earnings for the workweek. A. $678.40 B. $642.13 C. $601.60 D. $550.40 Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More B. $447.30 45 x 9 = 405.00 12.50 x 1.50 = 18.75 405.00 + 18.75 = 423.75 423.75 / 45 = 9.42 .5 x 9.42 x 5 = 23.55 405.00 + 18.75 + 23.55 = 447.30 An employee's base rate of pay is $9.00 and also receives a $1.50 per hour shift differential for working after 7pm. During one workweek she worked 45 hours (12.50 hours are with shift pay). Calculate her total earnings. A. $446.25 B. $447.30 C. $457.50 D. $502.50 C. $612.46 47 x 10 = 470.00 470 + 100 = 570.00 570.00 / 47 = 12.13 12.13 x .5 x 7 = 42.46 570 + 42.46 = 612.46 An employee's is paid an hourly rate of $10.00. During the current workweek the employee worked 47 hours and received a $100 nondiscretionary bonus. Calculate the employee's gross pay for the workweek. A. $570.00 B. $605.00 C. $612.46 D. $697.37 D. $12.82 37.50 x 52 = 1950 25,000 / 1950 = 12.82 An employee is scheduled to work 37.50 per week, with an annual salary of $25,000.00. The company pays biweekly and the employee has the following deduction; union dues $25.00, 401K 10% and child support for $25.00. Calculate the hourly rate of pay. A. $10.82 B. $11.54 C. $12.02 D. $12.82 D. $975.00 Exempt employees are only guarantee their weekly salary, also can not reduce pay if works less than an 8 hour day Calculate the gross pay due under the FLSA for an exempt employee, paid biweekly. Normal workweek 37.50 hours, weekly salary 487.50. Employee worked 43.00 hours 1st week and 38 hours the 2nd week. A. $1053.00 B. $1032.50 C. $994.50 D. $975.00 A. $770.00 385 + 385 = 770 "GAP" Courts have ruled that so long as you paid them min wage Its ok not to pay them more. But if it goes under min wage ER Must increase payment to at least min wage. A nonexempt salaried employee works 35 hours a week and is paid $20,020.00 annually. During the current pay period they worked 39 hours in the 1st week and 40 hours in the 2nd week. Calculate their biweekly earnings. A. $770.00 B. $791.40 C. $852.50 D. $946.00 A. $541.68 500 / 48 = 10.42 .5 x 10.42 x 8 = 41.68 500.00 + 41.68 = 541.68 Fluctuating workweek A nonexempt agrees to a fixed salary of $500.00 per week. Michael worked 48 hours one week. Calculate his earnings for that week. A. $541.68 B. $550.00 C. $625.04 D. $650.00 C. $495.00 5 x 1.5 + 40 = 47.50 427.50 / 47.50 = 9.00 1.5 x 9 x 5 = 67.50 427.50 + 67.50 = 495.00 Under the Belo plan an employee is guarantee a weekly salary of $427.50 for working 45 hours a week. Calculate their earnings when they work 50 hours in one week. A. $451.25 B. $470.25 C. $495.00 D. $498.75 C. $672.00 46 x 8 = 368.00 35 x 8 = 280.00 6 x .5 x 8 = 24.00 368.00 + 280.00 + 24.00 = 672.00 Note: Work this problem as if compensatory time was not stated. Bottom line, if this employee worked 46 hours one and 31 hours the 2nd week, this employee would receive the same pay as if they worked 40 hours each week. An employee is paid biweekly with an hourly rate of $8.00. They agree to work overtime in the 1st week and take compensatory time the next. They worked 46 hours in the 1st week and 35 the next. Calculate the employee's biweekly earnings. A. $648.00 B. $652.00 C. $672.00 D. $688.00 B. $3,601.13 FMV = 7425 x (.535 - .055) = $3564.00 An employee drives a qualifying vehicle 18,250 miles during 2017 and has personal miles of 7425. Mark pays for the gas. Calculate the FMV of his personal use of the car. A. $3,564.00 B. $3,601.13 C. $3,972.38 D. $4,009.50 D. $1,208.27 5600 / 19000 = 29.47% 4100 x 29.47% = 1208.27 An employee drives an employer provided car, its FMV is 14,000. In 2017 the employee drove 19,000; 5600 personal and 13,400 business miles. Using ALV table calculate the employee's personal use. A. $5,762.00 B. $2,716.00 C. $2,408.00 D. $1,208.27 B. $10.80 (30,000 x 2) - 50,000 = 10,000 10,000 / 1,000 = 10 10 x .09 = .90 .90 x 12 = 10.80 An employee's company provides their employees with group term life insurance at two times annual salary. An employee has an annual salary of $30,000 and was born on 10/14/79. Calculate the taxable GTL income for 2017. A. $12.00 B. $10.80 C. $1.00 D. $.90 C. $17,137.96 25% + 9% + 7.65% = 41.65% 100% - 41.65% = 58.35% 10,000 / 58.35% = 17,137.96 XZ company wants to give Terry a net check of $10,000 as a bonus. Using the following tax percentages, calculate the gross wages. FIT 25%, SIT 9%. A. $15,151.51 B. $16,570.01 C. $17,137.96 D. $17,436.79 B. $7,650.52 127,200 - 124,800 =2,400.00 2,400 x 6.2% = 148.80 5,000 + 148.80 =5148.80 25% + 6.25% + 1.45% = 32.70% 100% - 32.70% = 67.30% 5148.80 / 67.30% = 7650.52 To Check: 7650.52 x 25% = 1912.63 7650.52 x 6.25% = 478.16 7650.52 x 1.45% = 110.93 Soc Sec 148.80 Total Tax = 2650.52 7650.52 - 2650.52 = 5000 A manager has requested a net check of $5,000 for one of their staff. The employee's YTD FICA taxable wages are 124,800. Using the following tax percentages, calculate the gross wages. FIT 25%, SIT 6.25% and FICA. A. $7,579.20 B. $7,650.52 C. $7,923.93 D. $8,183.31 D. $3,500 2500 + 1200 - 200 meals = 3,500.00 A new hire is relocated 300 miles from their previous job and their new employer reimburses the employee the following: moving $2,500.00, travel $1,200 ($200 meals), selling expenses $8,000.00, pre-move expenses $1,700 ($300 meals) and relocation bonus of $5,000.00. Total reimbursement $18,400.00. What amount is not taxable? A. $5,400 B. $4,200 C. $3,700 D. $3,500 B. FIT = 562.50 FICA = 191.25 2500 x 10% = 250 2500 - 250 = 2,250.00 2250 x 25% = 562.50 2500 x 7.65% = 191.25 An employee was paid $2,500 for payperiod ending April 15 2017. Their current YTD wages are 25,000.00. He has 10% taken for 401k. Calculate FIT using 25% and FICA using current rates. A. FIT = 562.50 FICA = 141.25 B. FIT = 562.50 FICA = 191.25 C. FIT = 675.00 FICA = 172.13 D. FIT = 675.00 FICA = 191.25 B. FIT = 310.00 FICA = 108.63 1500 x 12% = 180.00 = 1240.00 1240 x 25% = 310.00 1500 - 80 = 1420.00 1420 x 7.65% = 108.63 An employee was paid 1,500.00 for the current payperiod. Their YTD wages are 54,343.10 and their current deductions are the following: union dues 15.00, 401k 12%, saving account 150.00 and pretax medical (125 plan) 80.00. Calculate FIT using 25% and FICA taxes using current rates. A. FIT = 310.00 FICA = 80.23 B. FIT = 310.00 FICA = 108.63 C. FIT = 330.00 FICA = 108.63 D. FIT = 355.00 FICA = 94.86 D. FIT = 12,168.00 SocSec = 5,617.20 94,800 x 10% = 9,480 94,800 - 9,480 - 3,000 - 1,200 = 81,120 81,120 x 15% = 12,168.00 94,800 - 3,000 - 1,200 = 90,600 90,600 x 6.2% = 5,617.20 An employee earned 94,800 for 2017. They had 10% deducted for 401k, 3,000 for FSA (125 plan), and 1,200 medical (pretax) and 1,200 for United Way. Calculate YTD SocSec and FIT using 15%. A. FIT = 14,220.00 SocSec = 5,617.20 B. FIT = 14,220.00 SocSec = 6,930.90 C. FIT = 12,168.00 SocSec = 3,805.20 D. FIT = 12,168.00 SocSec = 5,617.20 C. $375.00 37,500 + 12,500 = 50,000 37,500 / 50,000 = 75% 500 x 75% = 375.00 Note: Employees contributions that are paid with post tax or after tax dollar and are not taxable An employee receives $500 weekly from a third party insurer for sick pay. The employer contributed $37,500 and the employees contributed $12,500. What amount is included as taxable income? A. $0.00 B. $125.00 C. $375.00 D. $500.00 C. SP = 240.00 FIT = 36.00 3 / 5 = .6 400 x .6 = 240.00 60 x .6 = 36.00 An employee receives $400 per week (Sun-Sat paid on Friday) in sick pay from a third party insurer. The insurer receives form W-4S asking that $60 per week be withheld for FIT. The employee returned to work on Thursday after being out for 6 full weeks. What amount is the employee entitled to for sick pay and what amount is withheld for FIT? A. SP = 400.00 FIT = 60.00 B. SP = 240.00 FIT = 60.00 C. SP = 240.00 FIT = 36.00 D. SP = 160.00 FIT = 24.00 A. FIT = 10,125.00 FICA = 6,750.00 1500 x 9 x 75% = 10125.00 1500 x 6 x 75% = 6750.00 An employee receives $1,500 per month for 9 months in disability payments from a third party insurer. The employees pays 25% of the premiums in after tax payroll deductions and his employer pays the rest. Calculate the amount subject to FIT and FICA. A. FIT = 10,125.00 FICA = 6,750.00 B. FIT = 10,125.00 FICA = 10,125.00 C. FIT = 13,500.00 FICA = 9,000.00 D. FIT = 13,500.00 FICA = 13,500.00 C. $28,000 35,000 x 20% = 7,000 35,000 - 7,000 = 28,000.00 An employee terminates employment with their employer. They elects to have their 401k balance ($35,000) paid directly to them. How much will they receive? A. $24,150 B. $25,200 C. $28,000 D. $35,000