Compute Payroll Floatin 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 $5,000 per week $80 per hour $50 per hour Overtime earnings rate* Not applicable 1.5 times hourly rate 2 times hourly rate Number of withholding allowances 2 1 2 *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 46 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined from the wage bracket withholding table in Exhibit 2. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and one withholding allowance is $81. Determine the gross pay and the net pay for each of the three employees for the current pay period. If required, round your answers to two decimal places. Consultant Computer Programmer Administrator Gross pay $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Net pay $fill in the blank 4 $fill in the blank 5 $fill in the blank 6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compute Payroll

Floatin 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	$5,000 per week		$80 per hour	$50 per hour
Overtime earnings rate*	Not applicable		1.5 times hourly rate	2 times hourly rate
Number of withholding allowances	2		1	2
*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 46 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined from the wage bracket withholding table in Exhibit 2. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and one withholding allowance is $81.

Determine the gross pay and the net pay for each of the three employees for the current pay period. If required, round your answers to two decimal places.

	Consultant	Computer Programmer	Administrator
Gross pay	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Net pay	$fill in the blank 4	$fill in the blank 5	$fill in the blank 6

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Present question pertains to gross pay and net pay calculation of employees.

Gross pay is total income earned by any employee and net pay is income earned after deducting taxes etc. Calculations are as follows

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