ote:In this chapter and in all succeeding work throughout the course,unless instructed otherwise, calculate hourly rates and overtime rates as follows:

1.	Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the over-time rate).
2.	If the third decimal place is 5 or more, round to the next higher cent.
3.	If the third decimal place is less than 5, simply drop the third decimal place.
Examples:	Monthly rate $1,827 Weekly rate ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $15.81

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

Example 4-6

Mandi Robinson, married with three allowances, earns a monthly salary of $2,400. She also receives a bonus on sales that exceed her quota for the year. For this year, her bonus amounts to $4,600. Robinson's employer pays her the regular monthly salary and the bonus together on her December paycheck. The withholding for the December pay is computed on the total amount of $7,000 ($2,400 + $4,600). After deducting the allowances, using the percentage Tax Table 4(b), the amount to withhold is $715.62 [$7,000 3($333.30 = $6,000.10 $2,254.00 = $3,746.10 15% = $561.92 + $153.70].

The names of the employees of Matson Office Systems and their regular salaries are shown in the following payroll register. Note that Wayne and Young are paid monthly on the last payday, while all others are paid weekly.

In addition to the regular salaries, the company pays an annual bonus based on the amount of earnings for the year. For the current year, the bonus amounts to 8% of the annual salary paid to each employee. The bonus is to be paid along with the regular salaries on December 30, but the amount of the bonus and the amount of the regular salary will be shown separately on each employee's earnings statement. Assume that all employees received their regular salary during the entire year.

Prepare the payroll for the pay period ending December 30, showing the following for each employee:

• Use thewage-bracket methodto withhold federal income tax from the regular salaries.
• Withhold a flat 25% on the annual bonus.
• Total salaries and bonuses are subject to a 2% state income tax and a 1% city income tax.

Enter all amounts as positive numbers. Round your intermediate calculation and final answers to the nearest cent.

Click here to access the Wage-Bracket Method Tables.

For Period Ending December 30, 20--

Employee Name		No. of	Earnings	Deductions
Marital	W/H		(a)	(b)	(c) FICA	(d)	(e)	(f)	(g)
Status	Allowances	Regular	Supp'l.	Total	OASDI	HI	FIT	SIT	CIT	Net Pay
Wayne, Bret	M	5	$4,200.00*	$	$	$	$	$	$	$	$
Young, Gina	M	2	4,150.00*
Course, Rudy	S	1	810.00
Dickson, Emile	M	4	715.00
Woodrow, Walt	M	2	695.00
Noblet, Jim	S	1	525.00
Ono, Joan	M	2	800.00
Jones, Carrie	S	0	645.00
Totals	$	$	$	$	$	$	$	$	$

*Monthly

Compute the employers FICA taxes for the pay period ending December 30.

OASDI Taxes	HI Taxes
OASDI taxable earnings	$	HI taxable earnings	$
OASDI taxes	$	HI taxes	$