at College of Charlotte and is paid $20 per hour for a 40-hour workweek and time

Question

at College of Charlotte and is paid $20 per hour for a 40-hour workweek and time-and-a-halif for hours above 40. Renee Carver works (Click the icon to view payroll tax rate information.) Requirements . Compute Carver's gross pay for working 48 hours during the first week of February. 2. Carver is single, and her income tax withholding s 15% of total pay Carver's only payroll deductions are payroll taxes. Compute Carver's net (take-home) pay f the week. Assume Carver's earnings to date are less than the OASDI limit 3. Journalize the accrual of salaries and wages expense and the payments related to the employment of Renee Carver Requirement 1. Compute Carvers gross pay for working 48 hours during the first week of February Gross Pay Requirement 2 Carver is single, and her income tax withholding is 15% of total pay Carver's only payroll deductions are payroll taxes. Compute Carver's net Choose from any list or enter any number in the input fields and then continue to the next question.

Explanation / Answer

It is a problem on pay roll payment. A person has to work for 40 hours in a week. For this period, he will get wages of $20 per hour. If he work in excess of 40 hours, then 150% of normal rate is paid. This excess amout of 50% can be considered as overtime.

A worker in a week has worked for 48 hours. So for extra 48-40=8 hours he will get 150% of $20 hourly rate. So his wages will be-

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For passing Journal Wages will be debited for normal wages. Overtime is also debited as overtime wages. These two are expenses. Cash is paid. It is a real accout. So it will be credited with net take home pay. Finally deducted tax withholding is a libility. It is to be deposited with Fedreal. So it is credited. Thus Joural etry is-

Details Amount 1. Wages for first 40 hours: [40x$20] $800 2. Wages for 8 hours [8x$20x150%] $240 3. Total wages cosisting of:   (1+2) $1,040      - Normal wages [48x$20= $960 ] =     -Overtime wages [8x$20x50%=$80] Less: Payroll withholding for income tax 15% of $1,040] $156 Net take home pay $884

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