50.1K

Verified Solution

Link Copied!

Please explain how Net Pay (F) is found.

Use the following tax rates and taxable wage bases: Employees' and Employer's OASDI6.2% both on $137,700; HI1.45% for employees and employers on the total wages paid. Employees' Supplemental HI of 0.9% on wages in excess of $200,000 was not applicable. At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1.5 times the regular hourly rates. Company records show the following information for the week ended December 26, 20-- Cumulative Taxable Wages as of Last Pay Period (12/19/--). Salary Hrs. Worked Employee King, M. OFFICE $137,800.00 per year 40 $135,150.00 Manera, E. 40 $76,500.00 $6,500.00 per month $3,900.00 per month Tate, s. 48 $45,900.00 Yee, L. $12.50 per hour 44.5 $27,675.13 PLANT Diaz, R. $12.50 per hour 48 $14,778.96 Zagst, J. $14.50 per hour 52 $24,703.02 On the form below, calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime earnings, (d) FICA taxable wages, (e) FICA taxes to be withheld, and (f) net pay for the week ended December 26, 20--. Assume that there are 52 weekly payrolls in 20- -. Also, determine the total where indicated. Round your answers to the nearest cent and use those rounded amounts in subsequent calculations. If an amount box does not require an entry, leave it blank. Weekly Payroll for Period Ending December 26, 20-- Regular Earnings Employee Salary Hrs. Worked Overtime Earnings Total Reg. and O/T Earnings (B) (C) Cum. Taxable Wages as of Last Pay Period (12/19/--) FICA Taxable Wages This Pay Period (D) FICA Taxes to be Withheld (E) Net Pay (F) (A) OASDI HI OASDI HI OFFICE: King, $137,800.00 M. per year 40 40 $ 2,650 $ o 2,650 $135,150.00 2,550 $ 2,650 $ 158.10 $ 38.43 2,453.48 X $6,500.00 per Manera, E. 40 1,500 o 1,500 $76,500.00 1,500 1,500 93 21.75 1,385.25 mo. Tate, S. $3,900.00 per mo. 48 900 270 1,170 $45,900.00 1,170 1,170 72.54 16.97 1,080.50 X Yee, L. $12.50 per hr. 44.5 500 84.38 584.38 $27,675.13 584.38 584.38 36.23 8.47 539.67 X PLANT: Diaz, $12.50 per hr. 48 500 150 650 $14,778.96 650 650 40.30 9.43 600.28 x R. Zagst, J. $14.50 per hr. 52 580 261 841 $24,703.02 841 841 52.14 12.19 776.66 x Totals 6,630 $ 765.38 7,395.38 7,295.38 $ 7,395.38 452.31 107.24 6,835.83 Employer's FICA Taxes: OASDI: 452.31 HI: 107.23

Answer & Explanation Solved by verified expert

See Answer