Kathy Burnett works for Triumph Industries. Her pay rate is $13.44 per hour and

Question

Kathy Burnett works for Triumph Industries. Her pay rate is $13.44 per hour and she receives overtime pay at one and one-half times her regular hourly rate for any hours worked beyond 40 in a week. During the pay period that ended December 31, 2019, Kathy worked 42 hours. Kathy is married and claims three withholding allowances on her W-4 form. Kathy's cumulative earnings prior to this pay period total $29,000. Kathy's wages are subject to the following deductions:

Social Security tax at 6.2 percent

Medicare tax at 1.45 percent

Federal income tax (use the withholding table shown in Figure 10.2b)

Health and disability insurance premiums, $161

Charitable contribution, $18

U.S. Savings Bond, $100

Required:

Compute Kathy’s regular, overtime, gross, and net pay.

Assuming the weekly payroll has been recorded, journalize the payment of her wages for the week ended December 31, 2019.

Analyze:
Based on Kathy’s cumulative earnings through December 31, how much overtime pay did she earn this year?

Explanation / Answer

Journal entry:

Overtime pay:

Calculations:

537.60 = 40*13.44

Overtime pay = 2*1.5*13.44 = 40.32

Gross pay = 537.6+40.32 = 577.92

Regular pay = 40 hrs*52 weeks*13.44 = 27955.20

Employee name Hourly rate - Regular hours Hours worked Regular time pay Overtime pay Gross pay Kathy Burnett 13.44 42.00 537.60 40.32 577.92 Gross pay 577.92 less: Social security tax 35.83 Medicare tax 8.38 Income tax withholding 24.00 Health and disability 161.00 Charitable contribution 18.00 U.S. Saving Bond 100.00 Net pay 230.71

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.