The following information is available for the employees of Webber Packing Company for the first week of January Year 1:Kayla earns $27 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 45 hours the first week in January. Kayla's federal income tax withholding is equal to 9 percent of her gross pay. Webber pays medical insurance of $75 per week for Kayla and contributes $55 per week to a retirement plan for her.Paula earns a weekly salary of $1,400. Paula's federal income tax withholding is 19 percent of her gross pay. Webber pays medical insurance of $105 per week for Paula and contributes $120 per week to a retirement plan for her.Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $70 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.) ## Payroll Calculation for Webber Packing Company Employees### Required InformationThe following information applies to the questions displayed below and relates to the employees of Webber Packing Company for the first week of January Year 1:1. **Kayla's Earnings and Deductions** - Hourly wage: $27 per hour. - Overtime rate: 1½ times regular rate for hours over 40 per week. - Hours worked: 45 hours for the first week in January. - Federal income tax withholding: 9 percent of gross pay. - Medical insurance: $75 per week. - Retirement plan contribution: $55 per week. 2. **Paula's Earnings and Deductions** - Weekly salary: $1,040. - Federal income tax withholding: 19 percent of gross pay. - Medical insurance: $105 per week. - Retirement plan contribution: $120 per week.3. **Vacation Pay** - Accrual rate: 2 hours per week based on the regular pay rate. - Kayla: $54 per week. - Paula: $70 per week.### Tax Assumptions- Social Security tax rate: 6.0 percent on the first $110,000 of salaries.- Medicare tax rate: 1.5 percent of total salaries.- State unemployment tax rate: 5.4 percent of the first $7,000 of salary for each employee.- Federal unemployment tax rate: 0.6 percent of the first $7,000 of salary for each employee.### Computation Task#### 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.)**Table for Net Pay Calculation**| Employee | Net Pay ||----------|---------|| Kayla | || Paula | |**Explanation for Graphs or Diagrams:**There are no graphs or diagrams present in the given text. The information is purely textual, providing a basis for calculating the specified financial figures.---This content focuses on understanding the components of payroll, including regular and overtime pay, tax withholdings, medical insurance deductions, retirement contributions, and calculating net pay for employees. It is essential for students learning about payroll management and tax calculations.

Net pay is the amount of money that an employee receives after deductions such as taxes, Social…

The following information is available for the employees of Webber Packing Company for the first week of January Year 1: Kayla earns $27 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 45 hours the first week in January. Kayla's federal income tax withholding is equal to 9 percent of her gross pay. Webber pays medical insurance of $75 per week for Kayla and contributes $55 per week to a retirement plan for her. Paula earns a weekly salary of $1,400. Paula's federal income tax withholding is 19 percent of her gross pay. Webber pays medical insurance of $105 per week for Paula and contributes $120 per week to a retirement plan for her. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $70 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.)

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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The following information is available for the employees of Webber Packing Company for the first week of January Year 1:

Kayla earns $27 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 45 hours the first week in January. Kayla's federal income tax withholding is equal to 9 percent of her gross pay. Webber pays medical insurance of $75 per week for Kayla and contributes $55 per week to a retirement plan for her.
Paula earns a weekly salary of $1,400. Paula's federal income tax withholding is 19 percent of her gross pay. Webber pays medical insurance of $105 per week for Paula and contributes $120 per week to a retirement plan for her.
Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $70 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.)

## Payroll Calculation for Webber Packing Company Employees

### Required Information

The following information applies to the questions displayed below and relates to the employees of Webber Packing Company for the first week of January Year 1:

1. **Kayla's Earnings and Deductions**
- Hourly wage: $27 per hour.
- Overtime rate: 1½ times regular rate for hours over 40 per week.
- Hours worked: 45 hours for the first week in January.
- Federal income tax withholding: 9 percent of gross pay.
- Medical insurance: $75 per week.
- Retirement plan contribution: $55 per week.

2. **Paula's Earnings and Deductions**
- Weekly salary: $1,040.
- Federal income tax withholding: 19 percent of gross pay.
- Medical insurance: $105 per week.
- Retirement plan contribution: $120 per week.

3. **Vacation Pay**
- Accrual rate: 2 hours per week based on the regular pay rate.
- Kayla: $54 per week.
- Paula: $70 per week.

### Tax Assumptions

- Social Security tax rate: 6.0 percent on the first $110,000 of salaries.
- Medicare tax rate: 1.5 percent of total salaries.
- State unemployment tax rate: 5.4 percent of the first $7,000 of salary for each employee.
- Federal unemployment tax rate: 0.6 percent of the first $7,000 of salary for each employee.

### Computation Task

#### 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.)

**Table for Net Pay Calculation**

| Employee | Net Pay |
|----------|---------|
| Kayla | |
| Paula | |

**Explanation for Graphs or Diagrams:**

There are no graphs or diagrams present in the given text. The information is purely textual, providing a basis for calculating the specified financial figures.

---

This content focuses on understanding the components of payroll, including regular and overtime pay, tax withholdings, medical insurance deductions, retirement contributions, and calculating net pay for employees. It is essential for students learning about payroll management and tax calculations.

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