BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 11, Problem 11.9EX
Textbook Problem

Calculate payroll

An employee cams $25 per hour and 2 times that rate for all hours in excess of 40 hours per week, Assume that the employee worked 48 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $239.15.

  1. a. Determine the gross pay for the week.
  2. b. Determine the net pay for the week.

Expert Solution

A.

To determine

Gross pay: The total amount such as salary, wages, commissions, overtime, and bonus paid by the employer to an employee in each pay period is called as gross pay.

Net pay: It is the remaining amount of gross pay after all deductions.

To compute: Compute gross pay for the week.

Explanation of Solution

Calculate Employee’s gross pay as below:

Particulars Amounts
Regular pay (1) $1,000
Overtime pay (2) $400
Gross pay $1,400

Table (1)

Working notes:

Calculate regular pay.

Regular pay = 40 hours ×$25 per hour=$1,000 (1)

Calculate overtime pay

Expert Solution

B.

To determine

To compute: Compute net pay for the week.

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Chapter 11 Solutions

Accounting
Show all chapter solutions
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