Outback Guide Service has six employees and pays each week. Hourly employees are paid overtime for all
Question:
Outback Guide Service has six employees and pays each week. Hourly employees are paid overtime for all hours worked over 40 in a week. The overtime rate is 1½ times the regular rate of pay. Outback pays its employees by hourly rate, salary, or salary plus a 5% commission on total amount of sales.
Employee deductions include federal income taxes (use the tables on page 317), FICA taxes at 6.2% for social security and 1.45% for Medicare, state income taxes of 1.5%, and hospital insurance premiums of $5.43 for single employees and $9.37 for married employees. Also, Kim Wong and Tom Lengyel have $10.00 withheld each week to purchase U.S. savings bonds.
During the pay period ending October 17, the sales were: Tom Lengyel $1,204.76, Jean Robinson $1,925.80, and Kim Wong $2,135.65.
The hourly employees filled in the following time cards.
Instructions
On the forms in your working papers:
1. Complete the time cards to the nearest quarter hour.
2. Prepare a payroll register for the week ending October 17. The date of payment is also October 17. Each employee’s number, marital status, and number of allowances claimed are listed on her or his employee’s earnings record.
3. Prepare a payroll check and stub for each employee.
4. Record the payroll information for each employee on her or his employee’s earnings record.
Step by Step Answer:
To process the payroll as per the instructions given you would typically follow these steps 1 Complete the time cards to the nearest quarter hour 2 Ca...View the full answer
