Compute payroll K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant $2,610 per week Not applicable $910 Regular earnings rate Overtime earnings rate Federal income tax withheld Computer Programmer $36 per hour 2 times hourly rate $243 For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. Administrator $48 per hour 1.5 times hourly rate $505 For the current pay period, the computer programmer worked 53 hours and the administrator worked 61 hours. Assume that the social security tax rate was 6.0%, and the Medicare tax rate was 1.5%.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Compute payroll
K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll
information is available for each employee:
Computer Programmer
Regular earnings rate
$36 per hour
Overtime earnings rate
2 times hourly rate
$243
Federal income tax withheld
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 53 hours and the administrator worked 61 hours. Assume that the
social security tax rate was 6.0%, and the Medicare tax rate was 1.5%.
Gross pay
Net pay
Consultant
$2,610 per week
Not applicable
$910
Consultant
2,610
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. When required round intermediate calculations and final answers to two decimal places.
Administrator
Computer Programmer
$48 per hour
1.5 times hourly rate
$505
Administrator
Transcribed Image Text:Compute payroll K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Computer Programmer Regular earnings rate $36 per hour Overtime earnings rate 2 times hourly rate $243 Federal income tax withheld 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 53 hours and the administrator worked 61 hours. Assume that the social security tax rate was 6.0%, and the Medicare tax rate was 1.5%. Gross pay Net pay Consultant $2,610 per week Not applicable $910 Consultant 2,610 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. When required round intermediate calculations and final answers to two decimal places. Administrator Computer Programmer $48 per hour 1.5 times hourly rate $505 Administrator
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