Question

Print Item 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 $3,110 per week $36 per hour $50 per hour Overtime earnings rate Not applicable 1.5 times hourly rate 2 times hourly rate Number of withholding allowances 3 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. Administrator Computer Programmer Consultant Gross pay Net pay

Answer 1

Calculate the Gross pay :
Consultant :
Gross pay = Regular pay + Overtime Pay
Gross pay = $ 3,110 + $ 0
Gross pay = $ 3,110
Computer Programmer :
Gross pay = Regular pay + Overtime Pay
Gross pay = (40 hours * $ 36 per hour ) + ( 20 hours * $ 36 per hour * 1.5 times )
Gross pay = $ 1,440 +$ 1,080
Gross pay = $ 2,520
Here overtime pay = ( actual hours - normal hours)= (60-40 )= 20 hours
Administrator :
Gross pay = Regular pay + Overtime Pay
Gross pay = (40 hours * $ 50 per hour ) + ( 10 hours * $ 50 per hour *2 times )
Gross pay = $ 2,000 + $ $ 1000
Gross pay = $ 3,000
Here overtime pay = ( actual hours - normal hours)= (50-40 )= 10 hours

Calculate the Net pay :
Consultant :
Particulars	Amount ($)
Gross pay	$ 3,110
less: Deductions
Federal income tax withholding ( see note 1)	($ 666.02)
Social security tax ($3,110 * 6% )	($ 186.60)
Medicare tax ( $ 3,110 *1.5 % )	($ 46.65)
Net pay	$ 2,210.73
Computer programmer
Particulars	Amount ($)
Gross pay	$ 2,520
less: Deductions
Federal income tax withholding ( see note 1)	($ 559.62)
Social security tax ($2,520 * 6% )	($ 151.20)
Medicare tax ( $ 2,520 *1.5 % )	($ 37.80)
Net pay	$ 1,771.38
Administrator
Particulars	Amount ($)
Gross pay	$ 3,000
less: Deductions
Federal income tax withholding ( see note 1)	($ 694.02)
Social security tax ($3,,000 * 6% )	($ 180 )
Medicare tax ( $ 3,000 *1.5 % )	($ 45 )
Net pay	$ 2,080.98

EXPLANATION IS GIVEN BELOW :

note 1 :
Calculate of Federal income tax withholding :
Particular	Consultant	Computer programmer	Administrator
Gross weekly pay	$ 3,110	$ 2,520	$ 3,000
No. of withholding allowances	3	2	1
Value of one allowance	$ 70	$ 70	$ 70
Amount to be deducted	$ 210            {3*$70}	$ 140                 { 2*$70 }	$ 70    { 1*$ 70 }
Amount subject to withholding	$ 2,900   {$ 3,110-$210}	$ 2,380    {$ 2,520 -$ 140 }	$ 2,930     {$ 3,000-$70}
initial withholding	$ 356.90	$ 356.90	$ 356.90
bracket % over bracket excess	($2,900- $1,796 )*28%	($2,520- $1,796 )*28%	($3,000- $1,796 )*28%
	$ 309.12	$ 202.72	$ 337.12
Amount withheld	$ 666.02    {$356.90+$ 309.12}	$ 559.62    {$356.90+$ 202.72}	$ 694.02    {$356.90+$ 337.12}