Question

OEX71-10 Calculate payroll Obj. 2 Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Show Consultantc $4,000 per week Not applicable Computer Pregrammer Regular earnings rate Overtime earnings rate Number of withholding allowances $60 per hour 1.5 times hourly rate 550 per hour 2 times hourly rate or hourly employees overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 50 hours and the administrator worked 48 hours. The federal income tax withheld for all three employees who are single, can be determined from the wage bracket withholding table in Exhibit 2 in the chapter. Assume further that the social security tax rate was 6.0%, the Medicare tax t rate was 1.5%, and one withholding allowance is $75 Determine the gross pay and the net pay for each of the three employees for the current pay period. Answer +

Answer 1

Answer:

1) Determination of Gross pay for the week    & 2) Determination of Net pay for the week
	Consultant	Computer programmer	Administrator
Gross Pay-(40*60+10*90)&(40*50+8*100)	4,000	3,300	2,800
Deductions:
Medicare tax 1.5%	60	50	42
Social security tax 6%	240	198	168
Federal income tax withheld - 10%	400	330	280
Withholding allowance(75*2),(75*1)&(75*2)	150	75	150
Net Payment	3,150.00	2,647.50	2,160.00