Breakin Away Company has three employees-a consultant, a computer programmer, an

Question

Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant Computer Programmer Administrator Regular earnings rate $2,810 per week $36 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 1 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 $356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. 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 Gross pay $ 2,810 $ $ Net pay $ $ $

Explanation / Answer

Calculation for Gross Pay :-

Consultant :-

Gross Pay = Regular Pay + Overtime Pay

= $2810 + Nil

= $2810

Computer Programmer :-

Gross Pay = Regular Pay + Overtime Pay

= ($36*40) + (36*20*1.5)

= $1440 + $1080

= $2520

Administrator :-

Gross Pay = Regular Pay + Overtime Pay

= ($44*40) + ($44*10*2)

= $1760 + $880

= $2640

Calculation for Net Pay :-

Consultant :-

Computer Programmer :-

Administrator :-

Working Note 1 : -

Calculation of Federal Income Tax Withholding For :-

Particulars Amount ($) Gross Pay 2810 Less : Deductions Federal Income Tax withholding (582.02) Social Security Tax ($2810 * 6%) (168.6) Medicare Tax ($2810 * 1.5%) (42.15) Net Pay 2017.23

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

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