K. Mello 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 $2,310/week $32/hour $50/hour
Overtime earnings rate Not applicable 2 x hourly rate 1.5 x hourly rate
Federal income tax withheld $930 $258 $510

For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 51 hours and the administrator worked 61 hours. Assume further that the social security tax rate was 6%, and the Medicare tax rate was 1.5%.

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.

Respuesta :

Answer:

                        Consultant                 Programmer              Administrator

Gross income       $2310                         $1984                           $3575

Net Income           $1206.75                    $1577.20                      $2796.87

Explanation:

                     Consultant     Programmer  Overtime   Administrator Overtime

Hours worked        2310                      40               11                   40                 21

Applicable rate       1                        32                  64                  50              75

 Total                    2310                      1280          704                2000           1575

Gross income  

Consultant = $2310

Programmer = $1984

Administrator = $3575

Net Income             Consultant              Programmer           Administrator

Gross                          2310                          1984                      3575

Federal tax                 (930)                          (258)                      (510)

Social security            (138.6)                       (119.04)                 (214.5)

Medical tax                 (34.65)                       (29.76)                    (53.63)

Net income              1206.75                       1577.20                   2796.87