Question

Nigel McCloskey is a waiter at Albicious Foods in South Carolina. He is single with one withholding allowance. He receives the standard tipped hourly wage. During the week ending October 22, 20XX, he worked 44 hours and received $194 in tips. Calculate his gross pay, assuming his tips are included in the overtime rate determination. Use Table 3-2. Required: 1. Complete the payroll register for Nigel McCloskey. 2a. Does Albicious Foods need to contribute to Nigel’s wages to meet FLSA requirements? 2b. If so, how much should be contributed?

Answer 1

1. Payroll Register:

P/R End Date	10/22/20XX		Company Name	Albicious Foods
Check Date
Name	Married / Single (M/S)	Withholding (W/H)	Regular Hourly Rate	Overtime Rate	No. of Regular Hours	No. of Overtime Hours	Regular Earnings ($)	Tips ($)	Overtime Earnings ($)	Gross Earnings ($)
Nigel McCloskey	S	1	2.130	3.195	40	4	85.20	194.00	12.78	291.98

Nigel’s McCloskey wages for the week = Hourly Rate * Hours

                                                              = $2.13 * 40

= $85.20

Considering that in South Carolina, the minimum wage for tips is $2.13/hour.

Nigel’s McCloskey overtime wages for the week = Hourly Rate * 1.5 * Hours

= 2.13 * 1.5 * 4

= $12.78

Nigel’s McCloskey Gross pay = Wages + Tips

= $85.20 + $12.78 + $194

= $291.98

Minimum wage for South Carolina (None – follow FLSA)

= $7.25 * 40 Hours

= $290

2a. Albicious Foods need not to contribute to Nigel’s McCloskey wages to meet Fair Labor Standards Act (FLSA).

A company is required to contribute to the wage of employee if earning falls below to the minimum wage.