Question - Charlie Delta, an employee of the Bravo Zulu Company is paid by cheque on each payday and earns $15 per hour. Charlie worked 50 hours the week ending February 26, 2016. Overtime in excess of 40 hours must be paid at 150% of the normal hourly rate. Payroll liabilities are paid at the end of each quarter. The following apples to all of Charlie's wages for this period:
Item Rate/Amount
Social Security taxes 6.0%
Medicare/Medicaid taxes 1.5%
Federal Income Taxes withheld $210
State Income Taxes withheld $50
All this week's wages were subject to:
Item Rate/Amount
Federal Unemployment Tax 0.5%
State Unemployment Tax 3.0%
Use this information to determine for the February 26 pay period:
1. Charlie's Net Pay
2. Bravo Zulu's employer payroll tax expense
3. Total Payroll Liability for Bravo Zulu