Olney Company is a small manufacturing firm located in Allentown, 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 Olney 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, 20--.

Ms. Carmen V. Ruppert prepares the time clerks report for each pay period. Her report for the first week of operations is given below.

*All employees, except for Marshal Olney, are paid for hours worked beyond 40 at one and one-half times their regular hourly rate of pay.

Using the payroll register for Olney Company to answer the following questions:

1. In the Taxable Earnings columns, record the amount of each employees weekly earnings that is subject to FICA taxes.

2. Using the amount recorded in step 1, compute the taxes for each employee and record in the appropriate column.

If required, round your answers to nearest cent and use the rounded answers in subsequent computations. Round your final answers to the nearest cent.

Time Card No.Employee Name Hourly Wage or Salary Rob A. Mangino Inga C. Flores Carson S. Palmetto Randy F. Waters Cathy T. Kroll Carmen V. Ruppert William M. Scott Sarah A. Wickman Lucas T. Foley Marshal W. Olney 12 13 21 $18.50 per hour 19.25 per hour 17.80 per hour 20.70 per hour 23.80 per hour 31 800 per week 780 per week 32 3,500 per month 4,500 per month 51 78,000 per year Time Card No.Employee Name Hourly Wage or Salary Rob A. Mangino Inga C. Flores Carson S. Palmetto Randy F. Waters Cathy T. Kroll Carmen V. Ruppert William M. Scott Sarah A. Wickman Lucas T. Foley Marshal W. Olney 12 13 21 $18.50 per hour 19.25 per hour 17.80 per hour 20.70 per hour 23.80 per hour 31 800 per week 780 per week 32 3,500 per month 4,500 per month 51 78,000 per year