Donohue Professional Services has three employees-a consultant, a computer progr
ID: 2427152 • Letter: D
Question
Donohue Professional Services has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:
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 Regular earnings rate $2,110 per week $32 per hour $44 per hour Overtime earnings rate Not applicable 1.5 times hourly rate 2 times hourly rate Number of withholding allowances 3 2 1Explanation / Answer
Consultant
Computer programmer
Administrator
a.
Gross Pay
$ 2,110.00
$ 2,240.00
$ 2,640.00
b.
Less Exemption
$ 210.00
$ 140.00
$ 70.00
c.
Adj Gross pay (a-b)
$ 1,900.00
$ 2,100.00
$ 2,570.00
d.
Tax Table WH
$ 340.44
$ 340.44
$ 340.44
e.
Less Tax table Bracket
$ 1,687.00
$ 1,687.00
$ 1,687.00
f.
Balance WH @28%(c - e)
$ 213.00
$ 413.00
$ 883.00
g.
Additional tax WH (f x .28)
$ 59.64
$ 115.64
$ 247.24
h.
Total FIT (d + g)
$ 400.08
$ 456.08
$ 587.68
I.
FICA @ 6% (a x .06)
$ 126.60
$ 134.40
$ 158.40
j.
Medicare @1.5% (a x .015)
$ 31.65
$ 33.60
$ 39.60
k.
Total Withholding (h + I + j)
$ 558.33
$ 624.08
$ 785.68
l.
Net Pay (a - k)
$ 1,551.67
$ 1,615.92
$ 1,854.32
Consultant
Computer programmer
Administrator
a.
Gross Pay
$ 2,110.00
$ 2,240.00
$ 2,640.00
b.
Less Exemption
$ 210.00
$ 140.00
$ 70.00
c.
Adj Gross pay (a-b)
$ 1,900.00
$ 2,100.00
$ 2,570.00
d.
Tax Table WH
$ 340.44
$ 340.44
$ 340.44
e.
Less Tax table Bracket
$ 1,687.00
$ 1,687.00
$ 1,687.00
f.
Balance WH @28%(c - e)
$ 213.00
$ 413.00
$ 883.00
g.
Additional tax WH (f x .28)
$ 59.64
$ 115.64
$ 247.24
h.
Total FIT (d + g)
$ 400.08
$ 456.08
$ 587.68
I.
FICA @ 6% (a x .06)
$ 126.60
$ 134.40
$ 158.40
j.
Medicare @1.5% (a x .015)
$ 31.65
$ 33.60
$ 39.60
k.
Total Withholding (h + I + j)
$ 558.33
$ 624.08
$ 785.68
l.
Net Pay (a - k)
$ 1,551.67
$ 1,615.92
$ 1,854.32
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