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Sarah Brynski is busy running a Starbucks and thinking about inventory, making sure the store looks great, ensuring good service, hiring good people, motivating employees, maintaining inventories, calculating wages, deducting correct amounts for the various taxes, and getting the payroll done on time every week. She is also interested in finding ways to increase sales since part of her income is based on sales. Overtime is paid for more than 40 hours a week, the state tax rate is 3.07%3.07 \%, and the state disability income rate (SDI) is 1%1 \%.

Find the amount Brynski must send to the Internal Revenue Service for these employees.

Solution

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Answered 2 years ago
Answered 2 years ago
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First, lets find out the total employee FICA:

Betinez FICA = $15.19

Parton FICA = $36.07

Dickens FICA = $17.39

Brynski FICA = $40.66

Total employee FICA=Betinez FICA + Parton FICA + Dickens FICA+Brynski FICA=$15.19+$36.07+$17.39+$40.66=$109.31\begin{align*} \text{Total employee FICA} &= \text{Betinez FICA + Parton FICA + Dickens FICA}\\[7pt]& + \text{Brynski FICA}\\[7pt] &= \$15.19 + \$36.07 + \$17.39 + \$40.66\\[7pt] &= \$109.31 \end{align*}

Therefore, the total employee FICA is $109.31

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