**Breakin Away Company Payroll Information**Breakin Away Company has three employees: a consultant, a computer programmer, and an administrator. Below is the payroll information for each employee:| Position | Regular Earnings Rate | Overtime Earnings Rate | Number of Withholding Allowances ||------------------------|-----------------------|-------------------------------------|----------------------------------|| Consultant | $2,410 per week | Not applicable | 3 || Computer Programmer | $36 per hour | 1.5 times hourly rate | 2 || Administrator | $44 per hour | 2 times hourly rate | 1 |**Current Pay Period Information:**- The computer programmer worked 60 hours.- The administrator worked 50 hours.To determine the federal income tax withheld for all three employees, who are single, add $356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. Assume further:- Social Security tax rate: 6%- Medicare tax rate: 1.5%- One withholding allowance: $70**Objective:**Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume normal working hours in a week are 40 hours. Round answers to two decimal places if required.**Payroll Calculations Table:**| | Consultant | Computer Programmer | Administrator ||---------------|------------|----------------------|---------------|| **Gross Pay** | $2,410 | $2,520 | $2,640 || **Net Pay** | | $1,810.58 | |- The table provides a formatted view of the gross and net pay information for each employee. - The consultant’s gross and net pay calculation is complete.- The computer programmer's gross pay is calculated as $2,520, with a net pay of $1,810.58.- The administrator's gross and net pay needs to be finalized based on the given parameters. Complete the calculations by applying the tax rates, withholding allowances, and provided formula for tax withholding to achieve accurate net pay figures.

Breakin Away company has asked to compute Gross pay and Net pay by considering various factors like overtime pay ,Social security tax , Medicare tax and Federal income tax keeping in mind normal working hours and overtime hours worked and earning rates per hour. Gross pay is the pay which includes normal pay and overtime pay . Net pay on the other hand is the pay which is actually given in hand to employees after making certain deductions like taxes. 1.) Calculation of Regular pay Computer Programmer = (40 hours x $36 per hour ) = $1,440 Administrator = (40 hours x $44 per hour ) = $1,760 2.) Calculation of overtime pay Computer programmer = ( 60 hours - 40 hours) = 20 hours x $36 x 1.5 = $1,080 Administrator = ( 50 hours - 40 hours) = 10 hours x $44 x 2 = $880 3.) Calculation of social security tax = Gross pay x 6% Consultant = $2,410 x 6% = $144.6 Computer programmer = $2,520 x 6% = $151.20 Administrator = $2,640 x 6% = $158.40 4.) Calculation of Medicare tax Consultant = $2,410 x 1.5% = $36.15 Computer programmer = $2,520 x 1.5% = $37.80 Administrator = $2,640 x 1.5% = $39.60 5.) Calculation of Federal Income tax Federal Income tax = Gross salary - Allowances Consultant = $2,410 - (3 x$70) = $2,410 - $210 = $2200 = $359.60 + ($2,200 - $1,796 x 28%) = $359.60 + $113.12 = $472.72 Computer programmer = $2,520 - (2x$70) = $2,520 - $140 = $2,380 = $359.60 + ($2,380 - $1,796 x 28%) = $359.60 + $163.52 = $523.12 Administrator = $2,640 - (1 x $70) = $2,640 - $70 = $2,570 = $359.60 + ($2,570 - $1,796 x 28% ) = $359.60 + $216.72 = $576.32 Particulars Consultant Computer programmer Administrator Regular Pay (Note 1) $2,410 $1,440 $1,760 Overtime pay (Note 2) - $1,080 $880 Gross pay $2,410 $2,520 $2,640 Less: Social security tax $144.60 $151.20 $158.40 Medicare tax $36.15 $37.80 $39.60 Federal Income tax $472.72 $523.12 $576.32 Net pay $1,756.53 $1,807.88 $1,865.68 Round off $1,760.53 $1,810.88 $1,865.68

Business

Accounting

Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant Computer Programmer Administrator Regular earnings rate $2,410 per week $36 per hour $44 per hour Overtime earnings rate Not applicable 1.5 times hourly rate 2 times hourly rate Number of withholding allowances 3 1. For the current pay period, the computer programmer worked 60 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined by adding $356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. Assume further that the social security tax rate was 6%, the Medicare tax rate was 1.5%, and one withholding allowance is $70. Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places. Consultant Computer Programmer Administrator Gross pay 2,410 V 2,520 v 2,640 V Net pay 1,810.58

Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant Computer Programmer Administrator Regular earnings rate $2,410 per week $36 per hour $44 per hour Overtime earnings rate Not applicable 1.5 times hourly rate 2 times hourly rate Number of withholding allowances 3 1. For the current pay period, the computer programmer worked 60 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined by adding $356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. Assume further that the social security tax rate was 6%, the Medicare tax rate was 1.5%, and one withholding allowance is $70. Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places. Consultant Computer Programmer Administrator Gross pay 2,410 V 2,520 v 2,640 V Net pay 1,810.58

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

An employee earns $44 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 60 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee's federal income tax withheld is $708. a. Determine the gross pay for the week. If applicable, round your final answer to two decimal places. b. Determine the net pay for the week.
The following salaried employees of Mountain Stone Brewery in Fort Collins, Colorado, are paid semimonthly. Some employees have union dues or garnishments deducted from their pay. You do not need to complete the number of hours. Required: Calculate their net pay using the percentage method for manual payroll systems with Forms W-4 from 2020 or later in Appendix C to determine federal income tax. Assume box 2 is not checked for any employee. Include Colorado income tax of 4.55 percent of taxable pay. No employee has exceeded the maximum FICA limit. Note: Round your intermediate calculations and final answers to 2 decimal places. Employee S. Bergstrom C. Pare L. Van der Hooven S. Lightfoot Filing Status, Dependents MJ-0 MJ-2 (<17) S-1 (Other) MJ-0 Pay Union Dues per Period $ 1,870 $ 3,840 $ $ 3,565 $ $ 3,190 Garnishment per Period $ 120 240 $ 69 $ 50 75 100 Net Pay
Karen Law firm has paid $52,400.00 in salaries for the first quarter. Ms. Karen has computed the payroll taxes that must be paid as follows: FICA $4,008.60, FUTA $314.40, and SUTA $2,829.60.Prepare the journal entry to record these payroll taxes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.) Account Titles and Explanation Debit Credit
Toren Inc. employs one person to run its solar management company. The employee's gross income for the month of May is $8,000. Payroll for the month of May is as follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of $420, state income tax of $85, health-care insurance premium of $250, and union dues of $50. The employee is responsible for covering 30% of his or her health insurance premium. Toren Inc. have the following additional information: May is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,800 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 70% of the health insurance premium B. Record the payment in cash of all employer liabilities only on June 1. Round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank. June 1…
Toren Inc. employs one person to run its solar management company. The employee’s gross income for the month of May is $6,600. Payroll for the month of May is as follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of $420, state income tax of $85, health-care insurance premium of $230, and union dues of $50. The employee is responsible for covering 30% of his or her health insurance premium. A. Record the journal entry to recognize employee payroll for the month of May, dated May 31, 2017. Round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank. May 31 fill in the blank f06e6df38fa3f84_2 fill in the blank f06e6df38fa3f84_3 fill in the blank f06e6df38fa3f84_5 fill in the blank f06e6df38fa3f84_6 fill in the blank f06e6df38fa3f84_8 fill in the blank f06e6df38fa3f84_9 fill in the blank f06e6df38fa3f84_11 fill in the blank f06e6df38fa3f84_12 fill in the…
Calculate Payroll Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant Computer Programmer Administrator Regular earnings rate $3,210 per week $32 per hour $42 per hour Overtime earnings rate Not applicable 1.5 times hourly rate 2 times hourly rate Number of withholding allowances 3 2 1 For the current pay period, the computer programmer worked 60 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined by adding $356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. Assume further that the social security tax rate was 6%, the Medicare tax rate was 1.5%, and one withholding allowance is $70. Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal…
1/2 items. Calculate Pro Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Gross pay Net pay Consultant $2,510 per week Not applicable Regular earnings rate Overtime earnings rate. Number of withholding allowances 3 For the current pay period, the computer programmer worked 60 hours and the administrator worked 50 hours. The federal income tax withheid for all three employees, who are single, can be determined by adding $356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. Assume further that the social security tax rate was 6%, the Medicare tax rate was 1.5%, and one withholding allowance is $70. Check My Work Computer Programmer $32 per hour 2,510 Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your…
An employee whose regular hourly rate is $12 and whose overtime rate is 1.5 times the regular rate worked 45 hours in one week. The employers should record an overtime premium of blank in the payroll register.
K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Line Item Description Regular earnings rate Overtime earnings rate Federal income tax withheld Consultant Computer Programmer $3,210 per week $30 per hour Administrator $46 per hour Not applicable 2 times hourly rate 1.5 times hourly rate $925 $255 $495 For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 52 hours and the administrator worked 62 hours. Assume that the social security tax rate was 6.0%, and the Medicare tax rate was 1.5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the…
Deep Mouse Designs has 14 employees within Denver City and County. The employees earned $9.80 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? (Round your answers to 2 decimal places.)
An employee earns $24 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 60 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee's federal income tax withheld is $386. a. Determine the gross pay for the week. If applicable, round your final answer to two decimal places. b. Determine the net pay for the week.
Thomas Martin receives an hourly wage rate of $22, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 44; federal income tax withheld, $329; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the gross pay for Martin? a.$968 b.$1,012 c.$1,452 d.$1,936