Answer:
a. The total earnings is $840
The total deductions is $313
The cash paid is $527
b. The Social security and medicare taxes is $63
The State unemployment tax is $28.56
The Federal unemployment tax is $6.72
Explanation:
a. To calculate the (1) total earnings, (2) total deductions, and (3) cash paid we would have to calculate the following formula:
1. Total earnings=(15*40)+((48-40)*15*2)
Total earnings=$840
2. Total deductions=(Federal Tax+United fund deduction+Social security tax+Medicare tax)
Total deductions=$200+$50+($840*6%)+($840*1.5%)
Total deductions=$313
3. Cash paid=Total earnings-Total deductions
Cash paid=$840-$313
Cash paid=$527
b. The calculation of each of the employer's payroll taxes related to the earnings of Ella Dodd for the week ended March 15 would be the following:
Social security and medicare taxes=$840*(6%+1.5%)
Social security and medicare taxes=$63
State unemployment tax=$840*3.4%
State unemployment tax=$28.56
Federal unemployment tax=$840*0.8%
Federal unemployment tax=$6.72
