PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN: 9781337619783
Author: BIEG
Publisher: CENGAGE L
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Question
Chapter 3, Problem 17PB
1.
To determine
Calculate the regular earnings for the weekly payroll ended December 13, 2019.
1.
Expert Solution
Explanation of Solution
Calculate the regular earnings for the weekly payroll ended December 13, 2019.
Step 1: Calculate the annual salary of Employee LR, Employee RB and Employee GL.
| Employee | Monthly salary (A) | Annual salary (A×12months) |
| Employee JR | $7,280 per month | $87,360.00 |
| Employee OJ | $5,265 per month | $63,180.00 |
| Employee MK | $3,400 per month | $40,800.00 |
Table (1)
Step 2: Calculate the regular earnings of each employees.
| Employee | Annual salary (A) | Regular Weekly earnings |
| Employee WH | $99,840.00 | $1,920.00 |
| Employee PB | $96,200.00 | $1,850.00 |
| Employee JR | $87,360.00 | $1,680.00 |
| Employee OJ | $63,180.00 | $1,215.00 |
| Employee MK | $40,800.00 | $784.62 |
| Total | $387,380.00 | $7,449.62 |
Table (2)
Thus, the total regular earnings for the weekly payroll ended December 13, 2019 is $7,449.62
2.
To determine
Calculate the overtime earnings if any applicable to any employee.
2.
Expert Solution
Explanation of Solution
Calculate the overtime earnings for Employee GL.
| Employee | Weekly earnings (A) | Regular hourly rate (B) |
Overtime hourly rate (C) |
Overtime earnings (D) |
| Employee MK | $784.62 | $19.62 | $29.42 | $176.54 |
Table (3)
Thus, the overtime earnings for Employee GL is $176.54.
3.
To determine
Calculate the total regular, overtime earnings and bonus.
3.
Expert Solution
Explanation of Solution
Calculate the total regular, overtime earnings and bonus.
| Employee | Regular Weekly earnings | Overtime earnings | Annual bonus | Total earnings |
| Employee WH | $1,920.00 | $0.00 | $35,000 | $36,920.00 |
| Employee PB | $1,850.00 | $0.00 | $25,000 | $26,850.00 |
| Employee JR | $1,680.00 | $0.00 | $20,000 | $21,680.00 |
| Employee OJ | $1,215.00 | $0.00 | $15,000 | $16,215.00 |
| Employee MK | $784.62 | $176.54 | $8,000 | $8,961.16 |
| Total | $7,449.62 | $176.54 | $103,000 | $110,626.16 |
Table (4)
Calculation for total regular, overtime earnings and bonus is as follows.
Table (5)
4 and 5.
To determine
Calculate the FICA taxable wages for this period and FICA taxes to be withheld for this period.
4 and 5.
Expert Solution
Explanation of Solution
Calculate the FICA taxable wages for this period and FICA taxes to be withheld for this period.
| Cumulative earnings as of Last Pay Period | FICA Taxable Wages This Pay Period | FICA Taxes to be Withheld | Employees | ||
| OASDI (A) | HI (B) | OASDI | HI | ||
| $94,080.00 | $36,920.00 | $36,920.00 | $2,289.04 | $535.34 | Employee WH |
| $90,650.00 | $26,850.00 | $26,850.00 | $1,664.70 | $389.33 | Employee PB |
| $82,332.00 | $21,680.00 | $21,680.00 | $1,344.16 | $314.36 | Employee JR |
| $59,535.00 | $16,215.00 | $16,215.00 | $1,005.33 | $235.12 | Employee OJ |
| $38,446.38 | $8,961.16 | $8,961.16 | $555.59 | $129.94 | Employee MK |
| $110,626.16 | $110,626.16 | $6,858.82 | $1,604.08 | Totals | |
Table (6)
Step 3: Calculate the employer’s portion of the FICA taxes for the week ended.
Calculate the OASDI taxes.
Calculate the HI taxes.
Calculate the total FICA taxes.
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Chapter 3 Solutions
PAYROLL ACCT.,2019 ED.(LL)-TEXT
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