Zolnick Enterprises has two hourly employees: Kelly and Jon. Both employees earn overtime at the rate of 1.5 times the hourly rate for hours worked in excess of 40 per week. Assume the Social Security tax rate is 6 percent on the first $130,000 of wages, and the Medicare tax rate is 1.5 percent on all earnings. Federal income tax withheld for Kelly and Jon was $250 and $218, respectively, for the first week of January. The following information is for the first week in January, Year 1: Employee Kelly Jon Hours Worked 55 50 aGross pay b. Net pay Wage Rate per Hour $ 21 $ 26 Required a. & b. Calculate the gross pay and the net pay for each employee for the week. Note: Round the intermediate calculations and your final answers to 2 decimal places. Kelly Jon
Zolnick Enterprises has two hourly employees: Kelly and Jon. Both employees earn overtime at the rate of 1.5 times the hourly rate for hours worked in excess of 40 per week. Assume the Social Security tax rate is 6 percent on the first $130,000 of wages, and the Medicare tax rate is 1.5 percent on all earnings. Federal income tax withheld for Kelly and Jon was $250 and $218, respectively, for the first week of January. The following information is for the first week in January, Year 1: Employee Kelly Jon Hours Worked 55 50 aGross pay b. Net pay Wage Rate per Hour $ 21 $ 26 Required a. & b. Calculate the gross pay and the net pay for each employee for the week. Note: Round the intermediate calculations and your final answers to 2 decimal places. Kelly Jon
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Zolnick Enterprises has two hourly employees: Kelly and Jon. Both employees earn overtime at the rate of 1.5 times the hourly rate for
hours worked in excess of 40 per week. Assume the Social Security tax rate is 6 percent on the first $130,000 of wages, and the
Medicare tax rate is 1.5 percent on all earnings. Federal income tax withheld for Kelly and Jon was $250 and $218, respectively, for the
first week of January. The following information is for the first week in January, Year 1:
Employee
Kelly
Jon
Hours
Worked
a Gross pay
b. Net pay
55
50
Wage Rate:
per Hour
$ 21
Required
a. & b. Calculate the gross pay and the net pay for each employee for the week.
Note: Round the intermediate calculations and your final answers to 2 decimal places.
Kelly
Jon
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