Question

Continuing Payroll Problem, 2B: Chapter 2

Olney Company, Inc. is a small manufacturing firm located in Newtown, Pennsylvania. The company has a workforce of both hourly and salaried employees. Each employee is paid for hours actually worked during each week, with the time worked being recorded in quarter-hour increments. The standard workweek consists of 40 hours, with all employees being paid time and one-half for any hours worked beyond the 40 regular hours.

Wages are paid every Friday, with one week’s pay being held back by the company. Thus, the first payday for Olney Company is January 14 for the workweek ending January 8 (Saturday).

The Payroll Register for the pay period ending January 8, 20-- will be completed by you. Ms. Carmen V. Ruppert prepares the time clerk's report for each pay period, which is provided on the Time Clerk's Report page. Also, the Hourly Wage/Salary Report is provided.

Requirements:

1. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference.
2. Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. For only hourly employees that worked overtime, complete the Overtime Earnings columns (Rate per Hour and Amount).
   For salaried workers, complete the Regular Earnings column and show the hourly overtime rate and earnings only if overtime was worked.
3. Record the Total Earnings for each employee by adding the Regular Earnings and the Overtime Earnings.

Hourly Wage/Salary Report

The Hourly Wage/Salary Report is provided below which lists each employee, their assigned time card number and their individual hourly rate or salary.

Time Card No.	Employee Name	Hourly Wage or Salary
11	Rob A. Mangino	$18.50		per hour
12	Inga C. Flores	19.25		per hour
13	Carson S. Palmetto	17.80		per hour
21	Randy F. Waters	20.70		per hour
22	Cathy T. Kroll	23.80		per hour
31	Carmen V. Ruppert	800		per week
32	William M. Scott	780		per week
33	Sarah A. Wickman	3,500		per month
51	Lucas T. Foley	4,500		per month
99	Marshal W. Olney	78,000		per year

Time Clerk's Report

Ms. Carmen V. Ruppert prepares the time clerk's report for each pay period. Her report for the first week of operations is given below.

*Note: All employees, except for Marshal Olney, are paid for hours worked beyond 40 at one and one-half times their regular hourly rate of pay.

TIME CLERK'S REPORT NO. 1 For Period Ending January 8, 20-- Employee Time Record Time Worked* Time Lost M T W T F S 11 Rob A. Mangino 8 8 8 8 8 – 40 12 Inga C. Flores 8 8 8 8 10 8 50 13 Carson S. Palmetto 8 5½ 8 8 9 – 38½ 1½ hrs. tardy 21 Randy F. Waters 10 10 8 8 11 – 47 22 Cathy T. Kroll 8 8 8 8 8 – 40 31 Carmen V. Ruppert 8 8 8 8 8 1¼ 41¼ 32 William M. Scott 8 8 8 8 8 – 40 33 Sarah A. Wickman 8 8 8 8 8 – 40 51 Lucas T. Foley 8 8 8 8 9 4 45 99 Marshal W. Olney 8 8 8 8 8 – 40 Payroll Register This is the first task to completing Olney Company's payroll register. Complete the steps outlined below: Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference. Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. For only hourly employees that worked overtime, complete the Overtime Earnings columns (Rate per Hour and Amount). For salaried workers, complete the Regular Earnings column and show the hourly overtime rate and earnings only if overtime was worked. Record the Total Earnings for each employee by adding the Regular Earnings and the Overtime Earnings. If an amount box does not require an entry, leave it blank or enter "0". If required, round your intermediate calculations to the nearest cent and use the rounded amounts in subsequent computations. Round fraction values to the nearest two decimal places, e.g. 1 1/2 to 1.50. OLNEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20 -- Regular Earnings Overtime Earnings Time Card No. Name Marital Status No. W/H Allow. Hours Worked Rate per Hour Amount Hours Worked Rate per Hour Amount Total Earnings 11 Mangino, R. S 1 $ $ $ $ $ 12 Flores, I. S 0 13 Palmetto, C. M 2 21 Waters, R. M 3 22 Kroll, C. S 2 31 Ruppert, C. M 3 ……… 32 Scott, W. M 4 ……… 33 Wickman, S. S 1 ……… 51 Foley, L. M 5 ……… 99 Olney, M. M 7 ……… Totals $ ……… ……… $ $

Answer 1

Notes:-

It is mentioned in the question that each employee is paid for hours actually worked during each week,(therefore the total hrs of Plametto C is taken as 38.5)

Hourly rates
Ruppert	800 per week ,so for per hr = 800/40=20
Scott	780 per week,so for per hr=780/40=19.5
Wickman	3500 per month,so considering 4weeks in a month and 40 hrs in a week,so for 40X 4 ie 160 hrs,so per hour rate is 3500/160=21.875
Foley	4500 per month ,so considering 4 weeks in a month and 40 hrs in a wee,so total hrs is 40X4 ie 160 hrs,so per hr rate is 4500/160=28.125
olney	78000per year,considering 52 weeks in a year and 40 hrs in a week,so total hrs is 40X52ie 2080 hrs,so per hr rate is 78000/2080=37.5
Overtime rates	One and half times of regular earning hourly rate
Flores	19.25*1.5=28.875
Waters	20.7*1.5=31.05
Ruppert	20*1.5=30
Foley	28.125*1.5=42.1875

Statement showing Total Hrs and Total Earning of empleeys for the week 1st Jan to 8th Jan

Olney Company Inc
Employee Payroll Register
For the period Ending January 8 20XX
				Regular Earnings $			Overtime earnings $
Time card no	Name	Marital status	No.W/H allowed	hrs worked (A)	Rate per hr ($)(B)	Amount($ ( C =A* B)	Hours worked( D)	Rate per hour ($)( E)	Amount($)(F=D*E)	Total hrs worked(A+ D)	Total earning (C+F)($)
11	Mangino, R.	S	1	40	18.5	740	0	0	0	40	740
12	Flores, I.	S	0	40	19.25	770	10	28.875	288.75	50	1058.75
13	Palmetto, C.	M	2	38.5	17.8	685.3	0	0	0	38.5	685.3
21	Waters, R.	M	3	40	20.7	828	7	31.05	217.35	47	1045.35
22	Kroll, C.	S	2	40	23.8	952	0	0	0	40	952
31	Ruppert, C.	M	3	40	20	800	1.25	30	37.5	41.25	837.5
32	Scott, W.	M	4	40	19.5	780	0	0	0	40	780
33	Wickman, S.	S	1	40	21.875	875	0	0	0	40	875
51	Foley, L.	M	5	40	28.125	1125	5	42.1875	210.9375	45	1335.9375
99	Olney, M.	M	7	40	37.5	1500	0	0	0	40	1500