Freedom Inc. has 12 employees within Denver City and County. All of the employees worked a predominant number of hours within the city. The employees earned $9.60 per hour and worked 160 hours each during the month. The employer must remit $4.00 per month per employee who earns more than $500 per month. Additionally, employees who earn more than $500 per month must have $5.75 withheld from their pay. Required: What is the employee and employer Occupational Privilege Tax for these employees

Question

Business

Norah Shaw

13 January, 07:43

Freedom Inc. has 12 employees within Denver City and County. All of the employees worked a predominant number of hours within the city. The employees earned $9.60 per hour and worked 160 hours each during the month. The employer must remit $4.00 per month per employee who earns more than $500 per month. Additionally, employees who earn more than $500 per month must have $5.75 withheld from their pay. Required: What is the employee and employer Occupational Privilege Tax for these employees

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Jovanny Black · Answer 1

Employee occupational privilege tax for employees is $69

Employer occupational privilege tax for employees is $48

Explanation:

Employees earned $9.60 per hour

Total number of working hours = 160 hours

Earning per employee = $9.60 * 160 = $1,536

The following is the calculation for amount withheld from employees.

All the employees are earning above the threshold limit of $500. and are liable to OPT.

Number of employees = 12

total amount with held from employees = 12 * $5.75 = $69

total amount to be paid by employer = 12 * $4.00 = $48

Occupational Privilege tax

Employee $69

Employer $48