Question

Calculate Payroll Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant Computer Programmer Administrator Regular earnings rate Overtime earnings rate $3,110 per week Not applicable $28 per hour 1.5 times hourly rate $48 per hour 2 times hourly rate Number of withholding allowances For the current pay period, the computer programmer worked 60 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined by adding $356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. Assume further that the social security tax rate was 6%, the Medicare tax rate was 1.5%, and one withholding allowance is $70. Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places. Consultant Computer Programmer Administrator Gross pay Net pay

Answer 1

Working notes TA as Calculate withholding social security tad for consultant SST = 6%. *3110 - 4186.6 6) Calculate withholding medicase tax for consultant Medicare tax = 105% of gools salary 21-5% * $3110 - $46-65 Calculate the amount subject to withholding for consultant Amount subject to withholding Gross earning -withholding allowance - $3110 - ($70x3)=$990.0 Calculate federal income tax withheld $356-97 28% ($2900 - $1796) = $666.02- B) Regilas eaming for computer programme Regular payz 40 x 428 & 1120 Queitime payz 20 x $28x105. $840 sonal security tax = 6% X $ 1960-$117.6. Medicare teraz 1.5%x & 1960. $29.9. Amount subject to withholding tax - $1960 - $140 : $1820 Federal income tax withheld = $356.9 +287. ($1820 - $1796) $ 36 3.5 2

(6) Administrator. Regular caming 40x848 $1920. Qulltime payz 10x848622 4960 social security tua - 6% $2880 = $172-8 Medicale taxa 1.5%X $2880 = $43.2 Amount subject to with holding tas - $2880 -$70 - $2810 Withholding tax z $356-9 + 28%($9810-$1995) - $ 64082 Adminishahar Consultant Computer samme $3110 $1960 Gross pay $2880 $2210.73 $1449.38. * 2023.18 Netpay $2860-$1728 -$4302 - $640.82]