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.
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Chapter 3 Solutions
EBK PAYROLL ACCT.,2019 ED.
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