Floatin Away Company has three employeesa consultant, a computer programmer, and an administrator. The following...
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Accounting
Floatin Away Company has three employeesa 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
$32 per hour
$50 per hour
Overtime earnings rate*
Not applicable
1.5 times hourly rate
2 times hourly rate
Number of withholding allowances
3
2
1
*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 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 $276.54 to 24% of the difference between the employee's amount subject to withholding and $1,692.00. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and one withholding allowance is $81.
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
$fill in the blank 1
$fill in the blank 2
$fill in the blank 3
Net pay
$fill in the blank 4
$fill in the blank 5
$fill in the blank 6
Answer & Explanation
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