Showbiz Video has six employees who are paid weekly. The hourly employees are paid overtime for hours worked over 40 in a week, at a rate 1½ times their regular rate of pay. Employee information follows: 

Mary Arcompora, the store manager, is paid a salary of $300.00 per week plus 1% of all rental sales. Barbara Fox and John French, salespeople, are paid a salary of $200.00 per week plus a 6% commission on all rentals from the “Oldies but Goodies” section. Chris German and David Izbecki, office workers, are paid an hourly wage of $7.25. Susan Tilbert, a stock person, is paid $6.40 per hour.

The payroll deductions include federal income tax, social security tax of 6.2%, Medicare tax of 1.45%, and state income tax of 1.8%. Chris German and Susan Tilbert have $12.50 deducted each week for hospital insurance.

During the week ending October 24, “Oldies but Goodies” rentals were $484.90 for Barbara Fox and $641.70 for John French. Total rental revenue for the week was $3,917.30.

Instructions

Prepare a payroll register in your working papers for the week ending October 24. Complete time cards to the nearest quarter of an hour. Use the federal income tax tables provided in the chapter. 

Transcribed Image Text:

Employee Mary Arcompora Barbara Fox John French Chris German David Izbecki Susan Tilbert Employee Number 105 137 135 141 139 129 Marital Status Married Married Single Married Single Married Allowances 2 1 1 4 0