Question

Donohue Professional Services 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 $2,910 per week $30 per hour $40 per hour Overtime earnings rate Not applicable 1.5 times hourly rate 2 times hourly rate Number of withholding allowances 3 2 1 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 $340.44 to 28% of the difference between the employee's amount subject to withholding and $1,687.00. Assume further that the social security tax rate was 6%, the Medicare tax rate was 1.5%, and one withholding allowance is $70. WHAT IS GROSS PAY AND FINALLY NET PAY ?

Answer 1

calculation of gross pay

Sr.no.	Purticulers	Consultant	Programmer	Administator
A	Earning per week/hour	$2910	$30P.H.	$40 P.H.
B	Eraning for overtime per hour	NA	$45 P.H.	$80 P.H.
C	No of hours worked	NA	60 hours	50 hours
D	Normal earning for 40 hours	$2910	$1200 (40 hours*$30 PH)	$1600 (40 hours*$40 PH)
E	Extra Earning(work more then 40 Hours)	0	$900 (20 hour*$45)	$800 (10 hour*$80)
F	Gross earning	$2910	$2100	$2400

Note:It is assume that comapny is liable to pay extra amount to employee if he works more then 40 hours in a week

2.Calculation of net pay.

Sr.no	Purticulers	Consultant	Programmer	Administator
A	Gross Pay	$2910	$2100	$2400
B	Less:Federal Income tax	$172.88	$316.08	$470.08
	Less:Security tax@6%	$174.6	$126	$144
	Less:Medicare [email protected]%	$43.65	$31.5	$36
C	Net Pay	2518.87	1626.42	1749.92