Continuing Payroll Problem: 4-1A Note: For this edition, the 2014 federal income tax tables, FICA rates, OASDI rate of 6.2% on wages up to $117,000 and the employee and employer HI rate of 1.45% on all wages was used. Unless instructed otherwise, click here to calculate hourly rate and overtime rates. Kipley Company is a small manufacturing firm located in Pittsburgh, Pennsylvania. The company has a workforce of both hourly and salaried employees. Each employee is paid for hours actually worked during each week, with the time worked being recorded in quarter-hour increments. The standard workweek consists of 40 hours, with all employees being paid time and one-half for any hours worked beyond the 40 regular hours. Wages are paid every Friday, with one weeks pay being held back by the company. Thus, the first payday for Kipley Company is January 14 for the workweek ending January 8 (Saturday). The information below will be used in preparing the payroll for the pay period ending January 8. You will now determine the amount of income tax to withhold for each employee, proceeding as follows: Record the amount of federal income taxes using the wage-bracket method. Record the state income taxes on the gross weekly earnings for each employee. The rate is 3.07% for the state of Pennsylvania. Record the city income taxes on the gross weekly earnings of each employee. The rate is 3% for the city of Pittsburgh residents. If required, round your answers to the nearest cent. Click here to access the Wage-Bracket Method Tables. KIPLEY COMPANY Payroll Register Time Card No. Name Martial Status No of W/H Earnings SIMPLE Ded. FIT SIT CIT 11 Carson, F. S 1 $700.00 20 377.04 11.58 11.31 12 Wilson, W. S 0 897.04 50 13 Utley, H. M 2 678.75 40 21 Fife, L. M 4 877.10 50 22 Smith, L. S 2 790.00 20 31 Fay, G. M 3 539.15 40 32 Robey, G. M 6 623.08 50 33 Schork, T. S 1 773.08 60 51 Hardy, B. M 5 666.11 30 99 Kipley, C. M 7 1,000.00 80