Required information [The following information applies to the questions displayed below.] The following information is available for the employees of Webber Packing Company for the first week of January Year 1: 1. Kayla earns $25 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 46 hours the first week in January. Kayla's federal income tax withholding is equal to 10 percent of her gross pay. Webber pays medical insurance of $80 per week for Kayla and contributes $59 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,350. Paula's federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $115 per week for Paula and contributes $120 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $80 per week for Paula. Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of the first $7,000 of salary for each employee. b. Compute the net pay for both Kayla and Paula for the first week in January. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Net Pay Kayla Paula
Required information [The following information applies to the questions displayed below.] The following information is available for the employees of Webber Packing Company for the first week of January Year 1: 1. Kayla earns $25 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 46 hours the first week in January. Kayla's federal income tax withholding is equal to 10 percent of her gross pay. Webber pays medical insurance of $80 per week for Kayla and contributes $59 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,350. Paula's federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $115 per week for Paula and contributes $120 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $80 per week for Paula. Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of the first $7,000 of salary for each employee. b. Compute the net pay for both Kayla and Paula for the first week in January. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Net Pay Kayla Paula
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
The following information is available for the employees of Webber Packing Company for the first week of January Year 1:
1. Kayla earns $25 per hour and 1/2 times her regular rate for hours over 40 per week. Kayla worked 46 hours the first
week in January. Kayla's federal income tax withholding is equal to 10 percent of her gross pay. Webber pays medical
insurance of $80 per week for Kayla and contributes $59 per week to a retirement plan for her.
2. Paula earns a weekly salary of $1,350. Paula's federal income tax withholding is 17 percent of her gross pay. Webber
pays medical insurance of $115 per week for Paula and contributes $120 per week to a retirement plan for her.
3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $80 per week for
Paula.
Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent
of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of
the first $7,000 of salary for each employee.
b. Compute the net pay for both Kayla and Paula for the first week in January. (Do not round intermediate calculations. Round your
answers to 2 decimal places.)
Net Pay
Kayla
Paula](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec363e2c-f846-4493-b4ed-b5529cf7b4ef%2F06820a48-0ee4-45e8-8941-97facd68b11a%2F7afzdlw_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The following information is available for the employees of Webber Packing Company for the first week of January Year 1:
1. Kayla earns $25 per hour and 1/2 times her regular rate for hours over 40 per week. Kayla worked 46 hours the first
week in January. Kayla's federal income tax withholding is equal to 10 percent of her gross pay. Webber pays medical
insurance of $80 per week for Kayla and contributes $59 per week to a retirement plan for her.
2. Paula earns a weekly salary of $1,350. Paula's federal income tax withholding is 17 percent of her gross pay. Webber
pays medical insurance of $115 per week for Paula and contributes $120 per week to a retirement plan for her.
3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $80 per week for
Paula.
Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent
of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of
the first $7,000 of salary for each employee.
b. Compute the net pay for both Kayla and Paula for the first week in January. (Do not round intermediate calculations. Round your
answers to 2 decimal places.)
Net Pay
Kayla
Paula
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education