Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:

*For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 50 hours and the administrator worked 48 hours. The federal income tax withheld for all three employees, who are single, can be determined from the wage bracket withholding table in Exhibit 2 in the chapter. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and one withholding allowance is $75.
Determine the gross pay and the net pay for each of the three employees for the current pay period.
Exhibit 2
Wage Bracket Withholding Table
Table for Percentage Method of Withholding WEEKLY Payroll Period

4 IRS withholding tables are also available for married employees and for pay periods other than weekly.

 

Regular earnings rate Overtime earnings rate* Number of withholding allowances Consultant $4,000 per week Not applicable Computer Programmer $60 per hour 1.5 times hourly rate 2 times hourly rate Administrator $50 per hour 2 1 2