A sales person works at a local appliance store. Solve the following problems:

a. She is paid salary plus commission. Her salary is $330 per week. If her commission rate is 6% on all sales over $750, and one week her total sales were $2240, what was her gross salary?

b. Find the Social (FICA) and Medicare tax the must be deducted from her paycheck.

c. If the state disability insurance (SDI) rate is 1.5%, find what must be deducted for SDI.

d. Use the percentage method of withholding to find the amount of federal taxes that must be withheld from
her paycheck. She claimed 4 withholding allowances on her W-2 form, she is married, and she is paid
weekly. (follow the four steps on top of page 232).

 

 

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Finding the amount of withholding using the percentage method Step 1 Step 2 Step 3 Step 4 Multiply the number of withholding allowances by the amount for one withhold- ing allowance from the table titled "Percentage Method: Amount for One With- holding Allowance." Subtract the amount found in step 1 from gross earnings. Find the appropriate table for Percentage Method of Withholding and then find the correct row. Follow the directions in the table to find the tax to be withheld. Finding the amount of withholding using the percentage method Step 1 Step 2 Step 3 Step 4 Multiply the number of withholding allowances by the amount for one withhold- ing allowance from the table titled "Percentage Method: Amount for One With- holding Allowance." Subtract the amount found in step 1 from gross earnings. Find the appropriate table for Percentage Method of Withholding and then find the correct row. Follow the directions in the table to find the tax to be withheld.

Answer rating: 100% (QA)

a The sales persons commissionable sales are 2240 750 1490 Her commission is 6 of 1490 which is 8940 ... View the full answer