Question

# Calculate Payroll Donohue Professional Services has three employees-a consultant, a computer programmer, and an administrator. The...

Calculate Payroll

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 \$3,010 per week \$28 per hour \$42 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.

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.

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

 Consultant Programmer Administrator Gross Pay 3010.00 1960.00 2310.00 Net Pay 2132.17 1435.32 1641.47

Working:

 Employee Hours worked Normal Earnings Withholding Alowance Taxable FIT Total Normal Overtime rate/hour Normal Overtime Total Number Amount Earnings Consultant 3010 3 210 2800 652.08 Computer programmer 60 40 20 28 1120 840 1960 2 140 1820 377.68 Administrator 50 40 10 42 1680 630 2310 1 70 2240 495.28 Employee Gross Withholdings Net Pay Earnings FIT Social Security Medicare Total Consultant 3010.00 652.08 180.60 45.15 877.83 2132.17 Computer programmer 1960.00 377.68 117.60 29.40 524.68 1435.32 Administrator 2310.00 495.28 138.60 34.65 668.53 1641.47 Total 7280.00 1525.04 436.80 109.20 2071.04 5208.96

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