Question

In: Accounting

Our Toy Store has 3 employees. Below are their names, their pay rate and whether or...

Our Toy Store has 3 employees. Below are their names, their pay rate and whether or not they participate in the savings plan. Please complete a payroll register for the last half of December. Begin with a column for gross pay, including a column for each deduction ending with net pay. Each employee can chose whether or not they want to withhold money from their pay to put into a savings plan. If they participate in the savings plan, 2.5% of their gross pay is withheld before taxes. Federal income tax is withheld at 20%, social security tax is 6.2% and Medicare tax is 1.45%. Please round the social security and Medicare to 2 decimal places. Please use an IF command to determine saving participation and FICA taxes. Assume a $100,000 base FICA limit and assume prior earnings for Betty of 99,000.Betty Boss makes $150,000 per year and participates in the saving plan. Carrie Clerk makes $21.85per hour, and worked 86 hours this pay 80 hour pay period and did no savings plan. She gets paid time and a half overtime for hours over 80 hours. Patty Part-timer makes $11.50 per hour, worked 35 hours this pay period and did the savings plan.

Solutions

Expert Solution

Calculation of Wages

SL No.

Name

Rate

Normal Hrs

Overtime Hrs

Basic Wages

Overtime wages

Total Wages

1

Betty Boss (Gross Pay 150000-99000)

-

-

51,000.00

-

$ 51,000.00

2

Carrie Clerk

21.85

80.00

6.00

1,748.00

196.65

$    1,944.65

3

Patty

11.50

35.00

-

402.50

-

$        402.50

Calculation of Gross and Net Pay

SL No.

Name

Gross Salary

Saving Plan [email protected]%

Pay Before Taxes

Fereral Tax @20%( Charged on Gross Pay)

Security Tax @6.2 % ( Charged on Gross Pay

Medicare Tax @1.45% (Charged on Gross Pay)

Total of (Saving+All Taxes)

Net Pay = Gross Pay - Dedections)

1

Betty Boss

$     51,000.00

$           1,275.00

$     49,725.00

$   10,200.00

$                    3,162.00

$           739.50

$               15,376.50

$    35,623.50

2

Carrie Clerk

$        1,944.65

Not Opted

$        1,944.65

$         388.93

$                        120.57

$             28.20

$                     537.70

$      1,406.95

3

Patty

$           402.50

$                 10.06

$           392.44

$           80.50

$                          24.96

$               5.84

$                     121.35

$          281.15

ekkarill92 answered 1 year ago
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