Question

alculate Payroll

K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:

ConsultantComputer ProgrammerAdministrator

Regular earnings rate$2,310 per week $32 per hour $50 per hour

Overtime earnings rateNot applicable 2 times hourly rate 1.5 times hourly rate

Federal income tax withheld$910 $242 $510

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 51 hours and the administrator worked 64 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.

ConsultantComputer ProgrammerAdministrator

Gross pay$$$

Net pay$$$

Answer 1

	Consultant	Computer Programmer	Administrator
Gross pay	$2,310	$1,984	$3,800
		(40hours x $32 per hour) + [(51 (-) 40)hours x $32 x 2times)	(40hours x $50 per hour) + [(64 (-) 40)hours x $50 x 1.5times)
Less:
Federal income tax withhheld	$910	$242	$510
Social security tax - 6% (Gross pay x 6%)	$138.60	$119.04	$228
Medicare tax - 1.5% (Gross pay x 1.5%)	$34.65	$29.76	$57
Net pay	$1,226.75	$1,593.20	$3,005