Payroll Accounting: Impact of Minimum Wage on Comfortable Living

This payroll accounting assignment examines the relationship between minimum wage and a comfortable lifestyle. It calculates the hourly wage needed for a comfortable living, compares it to the current federal and state minimum wages, and discusses the impact of cost of living adjustments (COLA). The assignment analyzes whether a family earning minimum wage can maintain a comfortable lifestyle and explores the broader economic implications of minimum wage policies. It references sources on minimum wage impact and millennial opinions on wage increases. Desklib provides access to this and many other solved assignments and study resources.

Running head: PAYROLL ACCOUNTING
Payroll Accounting
Name of Student:
Name of University:
Author’s Note:

1PAYROLL ACCOUNTING
Table of Contents
Answer to Part 1..............................................................................................................................2
Answer to Part 2..............................................................................................................................2
Answer to Part 3..............................................................................................................................2
Answer to Part 4..............................................................................................................................2
Answer to Part 5..............................................................................................................................2
Answer to Part 6..............................................................................................................................3
Answer to Part 7..............................................................................................................................3
Answer to Part 8..............................................................................................................................3
Answer to Part 9..............................................................................................................................3
References........................................................................................................................................4

2PAYROLL ACCOUNTING
Answer to Part 1
A comfortable neighbourhood will consist of kid friendly amenities, parks for kids,
friendly people, proximity to the necessities and a safe environment.
Answer to Part 2
The annual household of the Smith to maintain a comfortable lifestyle in the
neighbourhood should be $ 80000.
Answer to Part 3
Hourly wage rate calculation for an individual
Hourly Wage Rate Calculation Earned by an individual
No. of Hours Worked in a week 40
Annual Income $54,644.00
Total Monthly Income $ 4,553.67
Total Hours Worked in a Month 160
Hourly Wage Rate $ 28.46
Answer to Part 4
The federal minimum wage rate is $7.25 per hour which is effective from July 24, 2009.
The state minimum wage rate is $ 7.25 per hour for Texas (LendEDU. 2017).
Answer to Part 5
The average household income to lead a comfortable life is segregated as per Mean
household income by ethnicity. As per this information the income needed are:

3PAYROLL ACCOUNTING
 Asian- $ 90752
 White Alone- $79340
 Latino- $ 54644
 Black- $ 49629
Answer to Part 6
No, I do not support minimum wage should have remained flat for so many years.
Answer to Part 7
The provision of COLA on minimum wage will allow the individuals to lead a
comfortable life even after retirement.
Answer to Part 8
The hourly wage rate of Smith family is $ 21.2 (28.46 - 7.25) more than the minimum wage rate.
No, smith cannot have a comfortable lifestyle making minimum wage.
Hourly Wage Rate Calculation Earned by an individual
Minimum Wage Rate 7.25
No. of Hours Worked in a week 40
Total Hours Worked in a Month 160
Total Monthly Income 1160
Total Annual Income 13920
Two members on minimum wage 27840
Even if Smith household was a two-income family on minimum wage they could not lead a
comfortable lifestyle.

4PAYROLL ACCOUNTING
Answer to Part 9
The changes in the is beneficial to the low wage earners, however this not beneficial to
the economy. These wages do not keep pace with inflation and signifies low growth in future
(Talent Economy 2017).
References
How Does the Minimum Wage Impact the Economy? - Talent Economy. (2017). Talent
Economy. Retrieved 20 February 2018, from
http://www.talenteconomy.io/2017/06/14/minimum-wage-impact-economy/
Most Millennials Do Not Think the Minimum Wage Should Be Raised - LendEDU.
(2017). LendEDU. Retrieved 20 February 2018, from https://lendedu.com/blog/millennials-do-
not-think-the-minimum-wage-should-be-raised/