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	$4,000 per week		$30 per hour		$40 per hour
Overtime earnings rate	Not applicable		2 times hourly rate		1.5 times hourly rate
Federal income tax withheld	$925.00		$248.00		$505.00
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 44 hours and the administrator worked 48 hours. Assume that the social security tax rate was 6.0%, 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. If required, round your answers to two decimal places.

	Consultant	Computer Programmer	Administrator
Gross pay	$	$	$
Net pay	$	$	$

Answer 1