Mann Hardware has four employees who are paid on an hourly basis plus time-and-a

ID: 2578160 • Letter: M

Question

Mann Hardware has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2017, are presented as follows.

Employee

Hours Worked

Hourly Rate

Federal Income Tax Withholdings

United Fund

Abel and Hager are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%.

Prepare a payroll register for the weekly payroll.

MANN HARDWARE
Payroll Register
For the Week Ending March 15, 2014

Earnings

Deductions

Employee

Hours

Regular

Overtime

Gross Pay

FICA

Federal Income Tax

State Income Tax

United Fund

Total

Net Pay

Salaries and Wages Expense

Totals

Employee

Hours Worked

Hourly Rate

Federal Income Tax Withholdings

United Fund

Ben Abel 40 $14 $? $4.00 Rita Hager 42 16 ? 4.00 Jack Never 44 12 60.00 6.00 Sue Perez 46 12 49.00 4.00

Explanation / Answer

40 * $14

= $560

7.65%* 560

=42.84

3%*560

=16.8

40*$16

= 640

[2 * 16] + [16*2/2]

= 48

7.65%*688

=52.63

3%*688

=20.64

40 *12

= 480

[4 *12] + [4*12 / 2]

=72

7.65%*552

=42.23

3% *552

=16.56

40 * 12

=480

[6*12] + [6*12 / 2]

= 108

7.65%*588

=44.98

3% *588

=17.64

Note:- Overtime is paid as 1/2 of total hours in excess of 40 hours

Employee Hours Regular Overtime Gross Pay FICA Federal Income Tax State Income Tax United Fund Total Net Pay Salaries and Wages Expense Ben Abel 40

40 * $14

= $560

- 560

7.65%* 560

=42.84

3%*560

=16.8

$4.00 112.64 447.36 560 Rita Hager 42

40*$16

= 640

[2 * 16] + [16*2/2]

= 48

688

7.65%*688

=52.63

3%*688

=20.64

4.00 97.27 590.73 688 Jack Never 44

40 *12

= 480

[4 *12] + [4*12 / 2]

=72

552

7.65%*552

=42.23

3% *552

=16.56

6.00 124.79 427.21 552 Sue Perez 46

40 * 12

=480

[6*12] + [6*12 / 2]

= 108

588

7.65%*588

=44.98

3% *588

=17.64

4.00 115.62 472.38 588 Totals 2160 228 2388 182.68 178 71.64 18 450.32 1937.68 2388

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Mann Hardware has four employees who are paid on an hourly basis plus time-and-a

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