Question

Juan Padronas works for H&C Commercial Builders, Inc. His pay rate is $13.00 per hour and he receives overtime pay at one and one-half times his regular hourly rate for any hours worked beyond page 34840 in a week. During the pay period ended December 31, 2019, Juan worked 48 hours. Juan is married and claims three withholding allowances on his W-4 form. Juan’s cumulative earnings prior to this pay period total $28,000. Juan’s wages are subject to the following deductions:

1. Social security tax at 6.2 percent

2. Medicare tax at 1.45 percent

3. Federal income tax (use the withholding table shown in Figure 10.2B)

4. Health insurance premiums, $150

5. Charitable contribution, $20

6. Credit Union Savings, $25

Answer 1

Answer:

1.

EMPLOYEE NO.		REGULAR HOURS, HOURLY RATE		HOURS WORKED		REGULAR TIME EARNINGS	OVERTIME EARNINGS		GROSS EARNINGS
Juan Padronas		$13.00		48		$520.00		$156.00		$676.00

Gross Pay						$676.00
Less:
Social Security Tax			41.91
Medicare Tax					9.80
Income Tax Withholding		38.00
Health Insurance				150.00
Charitable Contribution		20.00
Credit Union Savings			25.00
Net Pay						$391.29

2.

	GENERAL JOURNAL	PAGE	18
	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1	2019																			1
2	Dec.	31	Salaries Payable						3	9	1	29						2
3				Cash											3	9	1	29	3
4					Issued check for weekly payroll												4
5																				5
6																				6

Analyze:

Juan earned overtime pay of $1,636.00, calculated as follows:

Cumulative earnings, prior to December 31 payroll								$28,000.00
Add: gross pay for week ending December 31								676.00
Gross pay for the year																$28,676.00
Less: regular pay (40 hrs. X 52 weeks X $13.00)								27,040.00
Overtime pay for the year														$1,636.00