An employee receives an hourly rate of $45, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $950; Social security tax rate, 6.0%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000. Calculate the employer's payroll tax expense under the following circumstances. Round your answers to two decimal places.

Answer and Explanation:

For computing the employer payroll tax expense first we have to do The following calculations

Normal earnings is

= $45 × 40

= $1,800

Bonus earnings is

= (48 – 40) × $45 × 1.5

= 8 × 45 × 1.5

= $540

And, the  

Gross earnings is

= $1,800 + $540

= $2,340

a.

Payroll tax = Social security + Medicare + SUTA + FUTA

= ($2,340 × 6%) + ($2,340 × 1.5%) + ($2,340 × 3.4%) + ($2,340 × 0.8%)

= $140.4 + $35.1 + $79.56 + $18.72

= $273.78  

b. Gross earnings applicable for SUTA and FUTA is

= Limit - Cumulative earnings

= 7,000 - 6,200

= $800

Payroll tax = Social security + Medicare + SUTA + FUTA

= ($2,340 × 6%) + ($2,340 × 1.5%) + ($800 × 3.4%) + ($800 × 0.8%)

= $140.4 + $35.1 + $27.2 + $6.4

= $209.10

c.  For this case, there will be no SUTA and FUTA, as the cumulative earnings $118,700 is more than the prescribed limit $7,000.

Payroll tax = Social security + Medicare + SUTA + FUTA

= ($2,340 × 6%) + ($2,340 × 1.5%) + (0 × 3.4%) + (0 × 0.8%)

= $140.4 + $35.1 + 0 + 0

= $175.50

Note: As income tax is not relevant here, as this is employee’s part only.

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'