EX 11-10

Compute Payroll

• OBJ. 2 Floatin Away Company has three employeesa consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:

	Consultant	Computer Programmer	Administrator
Regular earnings rate	$5,000 per week	$80 per hour	$50 per hour
Overtime earnings rate	Not applicable	1.5 times hourly rate	2 times hourly rate
Number of withholding allowances	2	1	2

• For the current pay period, the computer programmer worked 46 hours and the administrator worked 50 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 $81. Determine the gross pay and the net pay for each of the three employees for the current pay period.

• Answer

Check Figure: Consultant net pay, $3,434.30