Question

Calculate Payroll K. Mello 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 $36 per hour $3,010 per week Not applicable $48 per hour 1.5 times hourly rate Overtime earnings rate 2 times hourly rate Federal income tax withheld $930 $246 $505 For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 52 hours and the administrator worked 61 hours. Assume further that the social security tax rate was 6%, and the Medicare tax rate was 1.5% 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 0

Answer 1

SOLUTION

	Consultant	Computer programmer	Administrator
Gross pay (A)	3,010	2,304	3,432
Less: Federal income tax withheld (B)	930	246	505
Social security tax (C=A*6%)	180.60	138.24	205.92
Medicare tax (D=A*1.5%)	45.15	34.56	51.48
Net pay (A-B-C-D)	1,854.25	1,885.20	2,669.60

Gross pay-

Consultant- $3,010 per week

Computer programmer- ($36*40 hours) + ($36*2*(52-40))

= 1,440 + 864 = 2,304

Administrator - ($48*40 hours) + ($48*1.5*(61-40))

= 1,920 + 1,512 = 3,432