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	$2,310 per week		$34 per hour		$48 per hour
Overtime earnings rate	Not applicable		2 times hourly rate		1.5 times hourly rate
Federal income tax withheld	$915		$255		$515

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 62 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

Particulars			consultant	computer progm	administrator
regular earning (34*40),(48*40)			2310	1360	1920
overtime earning			NA	884	1584
			NA	(2*13HR*34)	(1.5*22HRS*48)
Gross pay (1)			2310	2244	3504
federal income tax withheld (2)			915	255	515
security tax @6% 0f gross pay			138.6	134.64	210.24
medicare tax @ 1.5% gross pay			34.65	33.66	52.56
total tax exp (3)			173.25	168.3	262.8
net pay = 1-2-3			1221.75	1820.7	2726.2
over time hour = hour work-working hour
computer prog = 53hr-40hr = 13hr
administrator = 62hr-40hr = 22hrs