Cengagenowv2, 1 Term Printed Access Card For Bieg/toland's Payroll Accounting 2019, 29th
Cengagenowv2, 1 Term Printed Access Card For Bieg/toland's Payroll Accounting 2019, 29th
29th Edition
ISBN: 9781337619806
Author: Bernard J. Bieg, Judith Toland
Publisher: South-Western College Pub
Question
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Chapter 3, Problem 17PA

1.

To determine

Calculate the regular earnings for the weekly payroll ended December 13, 2019.

1.

Expert Solution
Check Mark

Explanation of Solution

Calculate the regular earnings for the weekly payroll ended December 13, 2019.

Step 1: Calculate the annual salary of Employee LR, Employee RB and Employee GL.

EmployeeMonthly salary (A)Annual salary (A×12months)
Employee LR$6,240 per month$74,880.00
Employee RB$4,680 per month$56,160.00
Employee GL$4,900 per month$58,800.00

Table (1)

Step 2: Calculate the regular earnings of each employees.

EmployeeAnnual salary (A)Regular Weekly earnings (A12)
Employee MA$97,240 $1,870.00
Employee BC$91,000 $1,750.00
Employee LR$74,880 $1,440.00
Employee RB$56,160 $1,080.00
Employee GL$58,800 $1,130.77
Total$378,080$7,270.77

Table (2)

Thus, the total regular earnings for the weekly payroll ended December 13, 2019 is $7,270.77

2.

To determine

Calculate the overtime earnings if any applicable to any employee.

2.

Expert Solution
Check Mark

Explanation of Solution

Calculate the overtime earnings for Employee GL.

EmployeeWeekly earnings (A)Regular hourly rate (B)(A40Hours)

Overtime hourly rate (C)

(B×1.5)

Overtime earnings (D)

(C×8Hours)

Employee GL$1,130.77 $28.27 $42.40 $339.23

Table (3)

Thus, the overtime earnings for Employee GL is $339.23.

3.

To determine

Calculate the total regular, overtime earnings and bonus.

3.

Expert Solution
Check Mark

Explanation of Solution

Calculate the total regular, overtime earnings and bonus.

EmployeeRegular Weekly earningsOvertime earningsAnnual bonusTotal earnings
Employee MA$1,870.00 $0.00 $40,000 $41,870.00
Employee BC$1,750.00 $0.00 $25,000 $26,750.00
Employee LR$1,440.00 $0.00 $20,000 $21,440.00
Employee RB$1,080.00 $0.00 $15,000 $16,080.00
Employee GL$1,130.77 $339.23 $8,000 $9,470.00
Total$7,270.77$339.23$108,000$115,610.00

Table (4)

Calculation for total regular, overtime earnings and bonus is as follows.

Cengagenowv2, 1 Term Printed Access Card For Bieg/toland's Payroll Accounting 2019, 29th, Chapter 3, Problem 17PA

Table (5)

4 and 5.

To determine

Calculate the FICA taxable wages for this period and FICA taxes to be withheld for this period.

4 and 5.

Expert Solution
Check Mark

Explanation of Solution

Calculate the FICA taxable wages for this period and FICA taxes to be withheld for this period.

Cumulative earnings as of Last Pay PeriodFICA Taxable Wages This Pay PeriodFICA Taxes to be WithheldEmployees
OASDI (A)HI (B)OASDIHI 
$91,630$36,770.00$41,870$2,279.74$607.12Employee MA
$85,750$26,750.00$26,750$1,658.50$387.88Employee BC
$70,560$21,440.00$21,440$1,329.28$310.88Employee LR
$52,920$16,080.00$16,080$996.96$233.16Employee RB
$34,890$9,470.00$9,470$587.14$137.32Employee GL
$110,510.00$115,610.00$6,851.62$1,676.35Totals

Table (6)

Note: Employee MA’s earnings is exceeding the taxable wage limit of $128,400. Thus, the $5,100[($91,630+$41,870)$128,400] would be deducted from the annual salary for OASDI taxable earnings. Thus, the total OASDI taxable earnings would be $36,770($41,870$5,100).

Step 3: Calculate the employer’s portion of the FICA taxes for the week ended.

Calculate the OASDI taxes.

Employer's portion of OASDI taxes=(Total OASDI earnings×Tax rate)=($110,510×6.20100)=$6,851.62

Calculate the HI taxes.

Employer's portion of HI taxes=(Total HI earnings×Tax rate)=($115,610×1.45100)=$1,676.35

Calculate the total FICA taxes.

Employer's portion of FICA taxes=(Total OASDI taxes×Total HI taxes)=($6,851.62+$1,676.35)=$8,527.97

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Chapter 3 Solutions

Cengagenowv2, 1 Term Printed Access Card For Bieg/toland's Payroll Accounting 2019, 29th

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