Natalie is considering hiring two permanent employees who are paid on an hourly basis plus time and a half for all worked hours in excess of 40 hours per week. She is curious as to how this would affect her company's financial position. She has created some hypothetical payroll data which is presented below.

Employee, Hours, Rate, Cumulative Earnings, Federal Income Tax, United Fund

B. Borke 40 $12 $12096 $? $8

E. Clarke 50 $12 $13104 $? $10

Borke and Clarke are each married and they claim 1 and 2 withholding allowances, respectively. The 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the medicare rate of 1.45% on all salaries and wages. State income tax are 4%.

Prepare a payroll register for the hypothetical weekly payroll. Use the tax withholdings table in the illustration 13.8 in the text for federal income tax withholdings. Since both employees have exceeded the $7,000 threshold for unemployment, no additional unemployment taxes are to be accrued or paid.

Employee, Hours, Regular, Overtime, Gross Pay, Cumulative, SS

B. Borke 40 ? ? ? ? ?

E. Clarke 50 ? ? ? ? ?

Employee, Medicare, FICA, Federal Income Tax, State Income Tax, United Fund

B. Borke ? ? ? ? ?

E. Clarke ? ? ? ? ?

Employee, Total, Net Pay, Salaries & Wages Expense

B. Borke ? ? ?

E. Clarke ? ? ?

Solve with Totals =