1.
Calculate the regular earnings for the weekly payroll ended December 13, 2019.
1.
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.
| Employee | Monthly 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.
| Employee | Annual salary (A) | Regular Weekly earnings |
| 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.
Calculate the overtime earnings if any applicable to any employee.
2.
Explanation of Solution
Calculate the overtime earnings for Employee GL.
| Employee | Weekly earnings (A) | Regular hourly rate (B) |
Overtime hourly rate (C) |
Overtime earnings (D) |
| Employee GL | $1,130.77 | $28.27 | $42.40 | $339.23 |
Table (3)
Thus, the overtime earnings for Employee GL is $339.23.
3.
Calculate the total regular, overtime earnings and bonus.
3.
Explanation of Solution
Calculate the total regular, overtime earnings and bonus.
| Employee | Regular Weekly earnings | Overtime earnings | Annual bonus | Total 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.
Table (5)
4 and 5.
Calculate the FICA taxable wages for this period and FICA taxes to be withheld for this period.
4 and 5.
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 Period | FICA Taxable Wages This Pay Period | FICA Taxes to be Withheld | Employees | ||
| OASDI (A) | HI (B) | OASDI | HI | ||
| $91,630 | $36,770.00 | $41,870 | $2,279.74 | $607.12 | Employee MA |
| $85,750 | $26,750.00 | $26,750 | $1,658.50 | $387.88 | Employee BC |
| $70,560 | $21,440.00 | $21,440 | $1,329.28 | $310.88 | Employee LR |
| $52,920 | $16,080.00 | $16,080 | $996.96 | $233.16 | Employee RB |
| $34,890 | $9,470.00 | $9,470 | $587.14 | $137.32 | Employee GL |
| $110,510.00 | $115,610.00 | $6,851.62 | $1,676.35 | Totals | |
Table (6)
Note: Employee MA’s earnings is exceeding the taxable wage limit of $128,400. Thus, the $5,100
Step 3: Calculate the employer’s portion of the FICA taxes for the week ended.
Calculate the OASDI taxes.
Calculate the HI taxes.
Calculate the total FICA taxes.
Want to see more full solutions like this?
Chapter 3 Solutions
EBK PAYROLL ACCT.,2019 ED.
- The Converting Department of Farhan Manufacturing had 1,200 units in work in process at the beginning of the period, which were 40% complete. During the period, 22,500 units were completed and transferred to the Packing Department. There were 1,310 units in process at the end of the period, which were 30%complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs.arrow_forwardSims Corporation's most recent balance sheet reports total assets of $32,300,000, total liabilities of $18,900,000, and total equity of $13,400,000. What is the Debt-to-Equity Ratio for the period?arrow_forwardneed help with this General accounting questionarrow_forward
- Kate Corporation owns a patent on an automated system. The company has been amortizing the patent on a straight-line basis since 2013, when it was acquired at a cost of $60 million at the beginning of that year. Due to technological advancements, management has now decided that the patent will benefit the company for a total of five years instead of the original ten-year amortization period. This decision was made at the end of 2016 (before adjusting and closing entries). What is the appropriate 2016 amortization expense for the patent?arrow_forwardCalculate the Operating Cash Flow (OCF) from the following data: • Change in net fixed assets: $25,000 • Change in net working capital: $30,000 • Dividends Paid: $35,000 Depreciation Expense: $40,000 • Interest Paid: $22,000 • Net New Borrowing: $18,000 • Net New Equity Issued: $12,000arrow_forwardA machine costing $92,500 with a 9-year life and $88,200 depreciable cost was purchased on January 1. Compute the yearly depreciation expense using straight-line depreciation. Round the answer to the nearest whole dollar.arrow_forward
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
College Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage Learning