Explanation Gross pay: The total amount such as salary, wages, commissions, overtime, and bonus paid by the employer to an employee in each pay period is called as gross pay. Net pay: It is the remaining amount of gross pay after all deductions. Determine the gross pay and the net pay for each employees for the current pay period. Consultant Computer Programmer Administrator Regular earnings $4,000.00 $2,400.00 (4) $2,000.00(9) Overtime earnings $900.00 (5) $800.00(10) Gross pay $4,000.00 $3,300.00 $2,800.00 Deductions: Social security tax $240.00(1) $198.00(6) $168.00(11) Medicare tax $60.00(2) $49.50(7) $42.00(12) Federal income tax withheld $939.52(3) $757.02(8) 596.02(13) Total deductions $1,239.52 $1,004.52 $806.02 Net pay $2,760.48 $2,295.48 $1,993.98 Table (1) Working note (1): Calculate withholding social security tax for Consultant. Social security tax = 6% × $4,000 = $ 240 Working note (2): Calculate withholding Medicare tax for Consultant. Medicare tax = 1 .5% of gross salary = 1.5 % × $ 4 , 000 = $ 60 Working note (3): Calculate the amount of federal income tax withheld for Consultant. Step 1: Calculate the amount subject to withholding. Amount subject to withholding = Gross earnings − Withholding allowances amount = $4,000 − ( $ 75 × 2 allowances ) = $ 4 , 000 − $ 150 = $ 3 , 850 Step 2: Calculate federal income tax withheld. Federal income tax withheld = $890 .02 + ( 33% × ( $ 3 , 850 − $ 3 , 700 ) ) = $ 939.52 Working note (4): Calculate regular earnings for Computer Programmer. Regular pay = 40 hours × $60 per hour = $ 2 , 400 Working note (5): Calculate overtime pay for Computer Programmer. Overtime pay = ( 50 hours – 40 hours ) × ( $ 60 × 1.5 ) = 10 hours × $90 per hour = $900 Working note (6): Calculate withholding social security tax for Computer Programmer. Social security tax = 6% × $3,300 = $ 198 Working note (7): Calculate withholding Medicare tax for Computer Programmer

15th Edition

ISBN: 9781337272124

Author: Carl Warren, James M. Reeve, Jonathan Duchac

Publisher: Cengage Learning

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Chapter 11, Problem 10E

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Calculate the gross pay and the net pay for each employees for the current pay period.

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Chapter 11, Problem 9E

Chapter 11, Problem 11E

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Chapter 11 Solutions

Financial Accounting

Ch. 11 - Does a discounted note payable provide credit...Ch. 11 - Employees are subject to taxes withheld from their...Ch. 11 - Prob. 3DQ Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ Ch. 11 - Prob. 6DQ Ch. 11 - Prob. 7DQ Ch. 11 - Prob. 8DQ Ch. 11 - When should the liability associated with a...Ch. 11 - Prob. 10DQ

Ch. 11 - Proceeds from notes payable On May 15, Maynard Co....Ch. 11 - Proceeds from notes payable On January 26, Nyree...Ch. 11 - Prob. 2PEA Ch. 11 - Prob. 2PEB Ch. 11 - Prob. 3PEA Ch. 11 - Prob. 3PEB Ch. 11 - Journalize period payroll The payroll register of...Ch. 11 - Journalize period payroll The payroll register of...Ch. 11 - Journalize payroll tax The payroll register of...Ch. 11 - Journalize payroll tax The payroll register of...Ch. 11 - Prob. 6PEA Ch. 11 - Prob. 6PEB Ch. 11 - Prob. 7PEA Ch. 11 - Prob. 7PEB Ch. 11 - Quick ratio Nabors Company reported the following...Ch. 11 - Quick ratio Adieu Company reported the following...Ch. 11 - Current liabilities Bon Nebo Co. sold 25,000...Ch. 11 - Entries for notes payable Cosimo Enterprises...Ch. 11 - Entries for discounting notes payable Ramsey...Ch. 11 - Evaluating alternative notes A borrower has two...Ch. 11 - Entries for notes payable A business issued a...Ch. 11 - Entries for discounted note payable A business...Ch. 11 - Entries for notes payable Bull City Industries is...Ch. 11 - Prob. 8E Ch. 11 - Calculate payroll An employee earns 25 per hour...Ch. 11 - Prob. 10E Ch. 11 - Summary payroll data In the following summary of...Ch. 11 - Payroll tax entries According to a summary of the...Ch. 11 - Payroll entries The payroll register for Gamble...Ch. 11 - Prob. 14E Ch. 11 - Prob. 15E Ch. 11 - Prob. 16E Ch. 11 - Accrued vacation pay A business provides its...Ch. 11 - Prob. 18E Ch. 11 - Prob. 19E Ch. 11 - Prob. 20E Ch. 11 - Accrued product warranty General Motors...Ch. 11 - Prob. 22E Ch. 11 - Quick ratio Gmeiner Co. had the following current...Ch. 11 - Prob. 24E Ch. 11 - Liability transactions The following items were...Ch. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Wage and tax statement data on employer FICA tax...Ch. 11 - Prob. 4PA Ch. 11 - Payroll accounts and year-end entries The...Ch. 11 - Prob. 1PB Ch. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Wage and tax statement data and employer FICA tax...Ch. 11 - Prob. 4PB Ch. 11 - Payroll accounts and year-end entries The...Ch. 11 - Prob. 3CPP Ch. 11 - Ethics in Action Tonya Latirno is a staff...Ch. 11 - Prob. 2CP Ch. 11 - Communication WBM Motorworks is a manufacturer of...Ch. 11 - Recognizing pension expense The annual examination...Ch. 11 - Prob. 7CP

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