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	$3,310 per week		$32 per hour		$44 per hour
Overtime earnings rate	Not applicable		2 times hourly rate		1.5 times hourly rate
Federal income tax withheld	$910		$244		$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 53 hours and the administrator worked 63 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.

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

Answer 1

Answer:

K. Mello Company
Particulars		Consultant	Computer Programmer	Administrator
Regular Earnings Rate	A	3310 per Week	32	44
Overtime Earnings Rate		Not Applicable	Double	1.5 times
Overtime Earnings Rate	B	NIL	64	66
Current Period Hours Worked	C	Not Applicable	53	63
Normal Working Hours	D	Not Applicable	40	40
Overtime Hours Worked	E=(C-D)	Not Applicable	13	23
Normal Wages	F=(A*D)	3310	1280	1760
Overtime Wages	G=(B*E)	Not Applicable	832	1518
Gross Pay	H=(F+G)	3310	2112	3278
Social Security Tax@6%	I = (H*6%)	198.6	126.72	196.68
Medicare Tax @1.5%	J=(H*1.5%)	49.65	31.68	49.17
Federal Income Tax Withheld	K	910	244	510
Net Pay	L=(H-(I+J+K))	2151.75	1709.6	2522.15
Note:- Answer
		Consultant	Computer Programmer	Administrator
Gross Pay ($)		3310	1280	3278
Net Pay ($)		2151.75	1709.6	2522.15