Our Toy Store has 3 employees. Below are their names, their pay rate and whether
ID: 2531449 • Letter: O
Question
Our Toy Store has 3 employees. Below are their names, their pay rate and whether or not they participate in the savings plan. Please complete a payroll register for the last half of December. Begin with a column for gross pay, including a column for each deduction ending with net pay. Each employee can chose whether or not they want to withhold money from their pay to put into a savings plan. If they participate in the savings plan, 2.5% of their gross pay is withheld before taxes. Federal income tax is withheld at 20%, social security tax is 6.2% and Medicare tax is 1.45%. Please round the social security and Medicare to 2 decimal places. Please use an IF command to determine saving participation and FICA taxes. Assume a $100,000 base FICA limit and assume prior earnings for Betty of 99,000.Betty Boss makes $150,000 per year and participates in the saving plan. Carrie Clerk makes $21.85per hour, and worked 86 hours this pay 80 hour pay period and did no savings plan. She gets paid time and a half overtime for hours over 80 hours. Patty Part-timer makes $11.50 per hour, worked 35 hours this pay period and did the savings plan.
Explanation / Answer
Calculation of Wages
SL No.
Name
Rate
Normal Hrs
Overtime Hrs
Basic Wages
Overtime wages
Total Wages
1
Betty Boss (Gross Pay 150000-99000)
-
-
51,000.00
-
$ 51,000.00
2
Carrie Clerk
21.85
80.00
6.00
1,748.00
196.65
$ 1,944.65
3
Patty
11.50
35.00
-
402.50
-
$ 402.50
Calculation of Gross and Net Pay
SL No.
Name
Gross Salary
Saving Plan Deduction@2.5%
Pay Before Taxes
Fereral Tax @20%( Charged on Gross Pay)
Security Tax @6.2 % ( Charged on Gross Pay
Medicare Tax @1.45% (Charged on Gross Pay)
Total of (Saving+All Taxes)
Net Pay = Gross Pay - Dedections)
1
Betty Boss
$ 51,000.00
$ 1,275.00
$ 49,725.00
$ 10,200.00
$ 3,162.00
$ 739.50
$ 15,376.50
$ 35,623.50
2
Carrie Clerk
$ 1,944.65
Not Opted
$ 1,944.65
$ 388.93
$ 120.57
$ 28.20
$ 537.70
$ 1,406.95
3
Patty
$ 402.50
$ 10.06
$ 392.44
$ 80.50
$ 24.96
$ 5.84
$ 121.35
$ 281.15
Calculation of Wages
SL No.
Name
Rate
Normal Hrs
Overtime Hrs
Basic Wages
Overtime wages
Total Wages
1
Betty Boss (Gross Pay 150000-99000)
-
-
51,000.00
-
$ 51,000.00
2
Carrie Clerk
21.85
80.00
6.00
1,748.00
196.65
$ 1,944.65
3
Patty
11.50
35.00
-
402.50
-
$ 402.50
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