Questions:

Answer the following questions in full.

1. Pam is compensated with an annual salary of $130,000 paid biweekly. Her regular workweek consists of four 10-hour days, and she is eligible for overtime at 1.5 times pay for any work in excess of his regular requirements. Pam worked regular hours for the first two weeks. Over the next two weeks, Pam worked her regular hours and became eligible for 11 hours of overtime. During these two weeks, she worked her regular shift on Christmas Eve but her employer had agreed to give her another day off with pay in the future.
1. Determine Pam's gross earnings for the first two-week pay period.
2. Determine Pam's gross earnings for the second two-week pay period.

 

2. Sam has taxable gross income of $214,500.
3. Calculate the federal income tax using a 20% tax rate. 
4. Calculate the state annual income taxes individually for the 3 states seen below
5. Then sum the amounts to calculate the total annual income taxes.

 

                                    Tax rates in the following states are:

                                                    i.     Maine                          13.25%

                                                  ii.     Massachusetts             17.5%

                                                iii.     Tennessee                    Tax Free

 

4. Your boss recently conducted a performance review, the time has come to discuss your raise. Currently, you earn $40,625 annually. Your boss has offered you a new salary of $43,000 annually. You know last year that the CPI was 104.1 and this year it sits at 106.6.
6. Assess the salary offer.