Math in the Workplace - Numbers & Operations
BOISE HARDWARE INC.
Retail Hardware Operation
Full Charge Bookkeeper
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Job Description: Responsible for accounts receivable, accounts payable, payroll, general ledger, inventory maintenance. |
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Problem:
All employees have to have Federal Social Security (FICA) and Medicare taxes taken from their gross wages. Figure the FICA and Medicare taxes for the following employee's gross wages and for the total gross wages.
Gross wages is the total earned before any deductions. FICA is 6.2% of the gross wages. Medicare is 1.45% of the gross wages.
| employee a |
$ 540.00 |
| employee b |
$ 870.00 |
| employee c |
$ 250.00 |
| employee d |
$ 125.00 |
| employee e |
$1,600.00 |
 BOISE HARDWARE INC.
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Solution:
| 1. |
employee a |
$ 540.00 |
| employee b |
$ 870.00 |
| employee c |
$ 250.00 |
| employee d |
$ 125.00 |
| employee e |
$1,600.00 |
|
 |
| total gross wages |
$3,385.00 |
| 2. |
FICA |
= |
6.2% of $3,385.00 |
= |
$209.87 |
|
Medicare |
= |
1.45% of $3,385.00 |
= |
$49.08 |
| 3. |
a |
6.2% x $540 = |
$33.48 |
|
1.45% x $540 = |
$7.83 |
| b |
6.2% x $870 = |
$53.94 |
|
1.45% x $870 = |
$12.62 |
| c |
6.2% x $250 = |
$15.50 |
|
1.45% x $250 = |
$3.63 |
| d |
6.2% x $125 = |
$ 7.75 |
|
1.45% x $125 = |
$1.81 |
| e |
6.2% x $1600 = |
$99.20 |
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1.45% x $1600 = |
$23.20 |
|
|
$209.87 |
|
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$49.09 |
There may be a penny or two difference when figured individually because of fractions of cents on each payroll.