Apply the following:

Round the hourly rate to 2 decimal places before calculating the overtime rate.

Round the overtime rate to 2 decimal places.

Use the minimum hourly wage of $7.25.

Use the following tax rates and taxable wage bases:

OASDI -- 6.2% on the first $132,900

HI -- 1.45% on all taxable wages,

HI -- extra 0.9% on wages over $200,000 (applies to employee & self-employed)

Cupcakes Bakery is a successful bakery that has been in business for several years.The following information is relevant for payroll calculations:

• The business is subject to FICA taxes.
• All of the employees fall under the overtime provisions of the Fair Labor Standards Actexceptfor Monique Pascal (the manager) and Stella Anderson (the salesperson).Monique and Stella do not get paid overtime.

Each employee is listed below with a job title, salary or other rate of pay, and method of calculating gross pay:

Employee

Job Title

Salary or

Other Rate of Pay

Method of Calculating Gross Weekly Pay

Exempt Employees:

Pascal, Monique

Manager

$80,000 annual salary plus bonuses (discretionary).

PaidWeekly.If she receives a discretionary bonus, it is paid at the end of each quarter in her last paycheck of the quarter.

Anderson, Stella

Sales

$35,000 annual salary plus commission.

PaidWeekly.She receives a commission of 4% for all sales over her monthly quota of $50,000.The commission is paid in the last paycheck of each month (based on the previous month's sales).

Nonexempt Employees:

Atkins,

Dean

Office Clerk

$22,000 annual salary for a 37-hour workweek.

PaidWeekly.For overtime, he is paid at the regular hourly rate up to 40 hours and time-and-a-half for hours beyond 40 in any week.

Bryte,

Kelly

Baker

$3,000 monthly salary for a 35-hour workweek.

PaidWeekly.For overtime, she is paid at the regular hourly rate up to 40 hours and time-and-a-half for hours beyond 40 in any week.

Hughes,

Ryan

Baker

$700 per week for fluctuating workweeks.

PaidWeekly.Weekly pay is $700 for working fluctuating workweeks.For overtime, he is paid using a half rate (based on total hours worked) for the hours over 40.

Perry,

Leslie

Assembly

$.75 for each cupcake she decorates and wraps.

PaidWeekly.Paid $.75 per cupcake.For overtime, she is paid using a half rate (based on total hours worked) for the hours over 40.

Spears, Lynette

Staff

Lynette is a floater.She does baking and office work.She is paid $17 per hour for baking and $11 per hour for office work.

PaidWeekly.Paid $17 per hour for baking and $11 per hour for office work.For overtime, she is paid using an average half rate for the hours over 40.

Additional information for the two EXEMPT employees: *Monique Pascal just found out that the owners have decided to give her a $25,000 quarterly bonus. The bonus is to be paid on December 31st along with her regular weekly earnings. *Stella Anderson had sales of $64,000 in November. Her commission from these sales will be paid in the December 31st pay period along with her regular weekly earnings. For December 31, 20-- Pay Period (52nd pay period of the year) Cumulative Earnings as of Bonus & OASDI Taxable OASDI Tax Employee 12/24/20-- Hours Worked Commission Regular Earnings Overtime Earnings Total Earnings Wages HI Taxable Wages Withheld HI Tax Withheld Pascal, Monique $106,619.27 $25,000 Anderson, Stella $53,457.28 64000 Atkins, Dean $29,543.26 42 hours Bryte, Kelly $38,542.46 41 hours Hughes, Ryan $42,150.52 43 hours 909 cupcakes in Perry, Leslie $32,450.45 45 hours 25 hours baking Spears, Lynette $30,980.67 19 hours office