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ACCT 1-2 Math CH13 Payroll Taxes Element 6 Final Review Questions. Brianne makes baby blankets for a baby store. She works on the blankets 30 hours per week. The store pays her $9.50 per hour plus 30% of the profit. Profits were $400.00. What is Brianne's gross pay? How much will she pay in the following taxes? Federal Income Tax -8.4%, State Income Tax - 9.5%, Social Security - 6.5%, Medicare - 1.5%. What is her Net pay? If her hourly rate is increased by $0.075 and her commission is raised to 40%, how much will she earn if a total of $300 in blankets is sold?

A. $ Gross Pay; $ Federal Tax; $ State Tax; $ Social Security Tax; $ Medicare Tax; $ Net Pay; $ Earnings with Increased Rate and Commission
B. $ Gross Pay; $ Federal Tax; $ State Tax; $ Social Security Tax; $ Medicare Tax; $ Net Pay; $ Earnings with Increased Rate and Commission
C. $ Gross Pay; $ Federal Tax; $ State Tax; $ Social Security Tax; $ Medicare Tax; $ Net Pay; $ Earnings with Increased Rate and Commission
D. $ Gross Pay; $ Federal Tax; $ State Tax; $ Social Security Tax; $ Medicare Tax; $ Net Pay; $ Earnings with Increased Rate and Commission

User Eyeslandic
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Final answer:

Brianne's gross pay from hourly wage and commission is $405.00. After deducting taxes, her net pay is $300.09. With a raised hourly rate and commission, her future earnings would be $407.25 if $300 in blankets is sold.

Step-by-step explanation:

Brianne's gross pay consists of her hourly wage plus the commission from profits. Her base pay is 30 hours multiplied by $9.50 per hour, which is $285.00. The commission is 30% of $400.00 in profits, giving her an additional $120.00. Her gross pay is therefore $285.00 + $120.00, which equals $405.00.

Now, let's calculate the taxes. Her federal income tax would be 8.4% of her gross pay, equating to $34.02. The state income tax is 9.5% attributable to her gross pay, amounting to $38.48. The Social Security deduction is 6.2% (but in this problem, it's specified at 6.5%, hence we'll use 6.5%) of her gross pay, which is $26.33. And Medicare, as specified, is 1.5% of her gross pay, so that's $6.08.

Brianne's net pay is the gross pay minus all the taxes. Therefore, her net pay is $405.00 - ($34.02 + $38.48 + $26.33 + $6.08), which is $405.00 - $104.91, totaling $300.09.

If Brianne's hourly rate is increased by $0.075, she will make $9.575 per hour. If her commission is raised to 40%, and the profit on blankets sold is $300, her new commission is 40% of $300, which is $120.00. Her earnings for 30 hours at the new hourly rate would be 30 hours * $9.575/hour, which is $287.25. Her total earnings with these increases would be $287.25 (hourly earnings) + $120.00 (commission), totaling $407.25.

User KieranLewin
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