Question

Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees make up Sugarhouse's staff:

Employee Number	Name and Address	Payroll information
A-Mille	Thomas Millen	Hire Date: 2-1-2019
	1022 Forest School Rd	DOB: 12-16-1982
	Woodstock, VT 05001	Position: Production Manager
	802-478-5055	PT/FT: FT, exempt
	SSN: 031-11-3456	No. of Exemptions: 4
	401(k) deduction: 3%	M/S: M
		Pay Rate: $35,000/year
A-Towle	Avery Towle	Hire Date: 2-1-2019
	4011 Route 100	DOB: 7-14-1991
	Plymouth, VT 05102	Position: Production Worker
	802-967-5873	PT/FT: FT, nonexempt
	SSN: 089-74-0974	No. of Exemptions: 1
	401(k) deduction: 5%	M/S: S
		Pay Rate: $12.00/hour
A-Long	Charlie Long	Hire Date: 2-1-2019
	242 Benedict Road	DOB: 3-16-1987
	S. Woodstock, VT 05002	Position: Production Worker
	802-429-3846	PT/FT: FT, nonexempt
	SSN: 056-23-4593	No. of Exemptions: 2
	401(k) deduction: 2%	M/S: M
		Pay Rate: $12.50/hour
B-Shang	Mary Shangraw	Hire Date: 2-1-2019
	1901 Main Street #2	DOB: 8-20-1994
	Bridgewater, VT 05520	Position: Administrative Assistant
	802-575-5423	PT/FT: PT, nonexempt
	SSN: 075-28-8945	No. of Exemptions: 1
	401(k) deduction: 3%	M/S: S
		Pay Rate: $11.00/hour
B-Lewis	Kristen Lewis	Hire Date: 2-1-2019
	840 Daily Hollow Road	DOB: 4-6-1960
	Bridgewater, VT 05523	Position: Office Manager
	802-390-5572	PT/FT: FT, exempt
	SSN: 076-39-5673	No. of Exemptions: 3
	401(k) deduction: 4%	M/S: M
		Pay Rate: $32,000/year
B-Schwa	Joel Schwartz	Hire Date: 2-1-2019
	55 Maple Farm Way	DOB: 5-23-1985
	Woodstock, VT 05534	Position: Sales
	802-463-9985	PT/FT: FT, exempt
	SSN: 021-34-9876	No. of Exemptions: 2
	401(k) deduction: 5%	M/S: M
		Pay Rate: $24,000/year base plus
		3% commission per case sold
B-Prevo	Toni Prevosti	Hire Date: 2-1-2019
	10520 Cox Hill Road	DOB: 9-18-1967
	Bridgewater, VT 05521	Position: Owner/President
	802-673-2636	PT/FT: FT, exempt
	SSN: 055-22-0443	No. of Exemptions: 5
	401(k) deduction: 6%	M/S: M
		Pay Rate: $45,000/year
Student Success	Student B. Success	Hire Date: 2-1-2019
	1644 Smitten Rd	DOB: 1-1-1991
	Woodstock/VT/05001	Position: Accounting Clerk
	[phone]	PT/FT: FT, nonexempt
	SSN: 555-55-5555	No. of Exemptions: 2
		M/S: S
		Pay Rate: $34,000/year

The departments are as follows:

Department A: Agricultural Workers

Department B: Office Workers

The first day of work for Prevosti Farms and Sugarhouse for all employees is February 4, 2019. February 8 is the end of the first pay period and includes work completed during the week of February 4–8. Compute the employee gross pay using 35 hours as the standard workweek for all employees except Mary Shangraw, who works 20 hours per week and receives overtime for any time worked past that point. The other hourly employees receive overtime pay when they work more than 35 hours in one week. Joel Schwartz has made $5,000 in case sales at a 3 percent commission rate during the 2/9 pay period. Joel Schwartz's sales are subject to commissions for the 2/22 pay period of $7,500. Remember that the employees are paid biweekly. Note that the first pay period comprises only one week of work, but the pay frequency for federal income tax purposes is biweekly.

Name	Annual Salary			Notes
Millen	$	35,000
Lewis	$	32,000
Schwartz	$	24,000		plus 3% Commission on Sales
Prevosti	$	45,000

The hours for the nonexempt employees are as follows:

Name	Hourly rate			Hours worked 2/4–2/8
Towle	$	12.00000			35 hours
Long	$	12.50000			40 hours
Shangraw	$	11.00000			21 hours
Success (You)	$	18.68132			35 hours

Name	Hourly rate			Hours worked 2/11-2/22
Towle	$	12.00000			80 hours
Long	$	12.50000			70 hours
Shangraw	$	11.00000			42 hours
Success (You)	$	18.68132			71 hours

Although the company has already established medical and retirement plan benefits, Toni Prevosti wants to consider other benefits to attract employees. As the company’s accountant, you have been tasked with annotating employee earnings records with benefit elections for each employee. The gym membership is for a dedicated facility for employees and spouses. The following sheet contains details of employee choices. These costs are employer paid and will take effect on the first pay period of March.

Employee	Flex-Time	Child Care Assistance (under $5,000 annually)	FSA (annual)		Educational Assistance ($4,000 annually)	Life Insurance (at 1% of annual salary value)	Long-Term Care Insurance ($15 per period)	Gym Membership ($15 per month)
Millen	Yes	Yes	$	500.00	No	Yes	No	Yes
Towle	No	No	$	1,200.00	Yes	No	No	Yes
Long	Yes	Yes	$	700.00	Yes	Yes	No	Yes
Shangraw	Yes	No	$	200.00	No	Yes	No	No
Lewis	No	No	$	1,600.00	No	Yes	Yes	No
Schwartz	No	No	$	450.00	Yes	Yes	No	Yes
Prevosti	Yes	No	$	900.00	No	Yes	No	Yes
Student	No	No	$	300.00	Yes	No	No	Yes

Annotate the Employee Earning Records with payroll-related benefit elections. The amount per period should be included in the record. As an example, if an employee elected to contribute $1,300 to his or her FSA, the period payroll deduction would be $1,300/26, or $50. The estimated yealy earnings used to compute the life insurance deduction for the hourly employees is: (hourly wages times number of hours worked per week × 52 weeks). Multiply the yearly earnings by 1% and divide by 26 pay periods to get the insurance per pay period. Example: Employee earns $11 per hour and works 20 hours a week. ($11 × 20 × 52) = $11,440 estimated annual earnings. $11,440 × 1% = $114.40. $114.40 / 26 = $4.40 insurance amount per pay period.

Complete the question by entering your answers in the tabs below.

• Thomas Millen
• Avery Towle
• Charlie Long
• Mary Shangraw
• Kristen Lewis
• Joel Schwartz
• Toni Prevosti
• Student Success

Complete the Employee Information Form for Thomas Millen. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

EMPLOYEE EARNINGS RECORD

Name

Thomas Millen

Hire Date

2/1/2019

Address

1022 Forest School Rd

Date of Birth

12/16/1982

City/State/Zip

Woodstock/VT/05001

Exempt/Nonexempt

Exempt

Telephone

802-478-5055

Married/Single (M or S)

M

Social Security Number

031-11-3456

Number of exemptions

4

Position

Production Manager

Pay Rate

$35,000.00

/

Year

Flex-time

Child Care

FSA amount

Educ. Assist.

Life Ins.

Long-term care

Gym

Total Benefit

Answer 1