K. Mello Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: ConsultantComputer ProgrammerAdministratorRegular earnings rate$5,000 per week $50 per hour $60 per hour Overtime earnings rateNot applicable 2 times hourly rate 1.5 times hourly rate Federal income tax withheld$1,150 $428 $572 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 48 hours and the administrator worked 51 hours. Assume that the social security tax rate was 6.0%, and the Medicare tax rate was 1.5%.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.

Social tax security is a compulsory contribution of employer and employee. It funds the retirement,…

Answered: K. Mello Company has three employees—a…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 4E

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K. Mello 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		$50 per hour	$60 per hour
Overtime earnings rate	Not applicable		2 times hourly rate	1.5 times hourly rate
Federal income tax withheld	$1,150		$428	$572
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 48 hours and the administrator worked 51 hours. Assume that the social security tax rate was 6.0%, and the Medicare tax rate was 1.5%.

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.

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