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 in the chapter. 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. Consultant net pay should be $3,434.30 Exhibit 2 Example is the Image
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 in the chapter. 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.
Consultant net pay should be $3,434.30
Exhibit 2 Example is the Image
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