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 $3,010 per week $36 per hour $50 per hour Overtime earnings rate Not applicable 2 times hourly rate 1.5 times hourly rate Federal income tax withheld $910 $258 $515 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

Answer 1

	Consultant	Computer Programmer	Administrator
Gross Pay	$3,010	$1,440	$2,000
Net Pay	$1,874	$1,873	$2,850

Supporting calculations;

	Consultant	Computer Programmer	Administrator
Regular earnings rate (a)	$3,010 per week	$36 per hour	$50 per hour
Actual total hours worked	-	52 hours	61 hours
Actual hours relating to Normal Pay	-	40 hours	40 hours
Actual overtime hours (52 - 40); (61 - 40)	-	12 hours	21 hours
Total Normal Pay (40 * $36); (40 * $50)	$3,010	$1,440	$2,000
Add: Total Overtime Pay (12 * $36 * 2); (21 * $50 * 1.5)	-	$864	$1,638
Gross Pay	$3,010	$2,304	$3,638
Less: Federal Income Taxes Withheld	($910)	($258)	($515)
Less: Social Security Tax ($3,010*6/100); ($2,304*6/100); ($3,638*6/100)	($180.60)	($138.24)	($218.28)
Less: Medicare taxes ($3,010*1.5/100); ($2,304*1.5/100); ($3,638*1.5/100)	($45.15)	($34.56)	($54.57)
Net Pay	$1,874	$1,873	$2,850