Hot Suds Car Wash has four employees. They are paid on a weekly basis with overtime paid for all hours worked over 40 in a week. The overtime rate is 1½ times the regular rate of pay. The payroll information follows. 

During the week ending October 9, Dumser worked 39 hours, Job worked 41 hours, and Liptak and Stern each worked 36 hours. 

Instructions 

On the forms provided in your working papers:

1. Prepare a payroll register for the week ending October 9. The date of payment is also October 9. List employees in alphabetical order by last name. Use the tables on page 317 to determine the federal income tax withholding. The rate for the state income tax is 2%. Compute social security tax at 6.2% and Medicare tax at 1.45%. Union members pay weekly dues of $4.50. Both Gail Job and Bruce Stern had $6.75 deducted for health and hospital insurance.

2. Total the amount columns. Subtract total deductions from total earnings. Does the result equal the sum of the Net Pay column? If not, find and correct any error(s) on the payroll register.

Transcribed Image Text:

Employee James Dumser Gail Job James Liptak Bruce Stern Employee Number 108 112 102 109 Rate per Hour $6.40 $7.22 $6.70 $7.80 Marital Status Single Married Married Single Allowances 0 1 2 1 Union Member No Yes Yes Yes