Question
Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees make up Sugarhouse's staff: Employee Number Name and Address Payroll
Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees make up Sugarhouse's staff:
Employee Number | Name and Address | Payroll information |
A-Mille | Thomas Millen | Hire Date: 2-1-2019 |
1022 Forest School Rd | DOB: 12-16-1982 | |
Woodstock, VT 05001 | Position: Production Manager | |
802-478-5055 | PT/FT: FT, exempt | |
SSN: 031-11-3456 | No. of Exemptions: 4 | |
401(k) deduction: 3% | M/S: M | |
Pay Rate: $35,000/year | ||
A-Towle | Avery Towle | Hire Date: 2-1-2019 |
4011 Route 100 | DOB: 7-14-1991 | |
Plymouth, VT 05102 | Position: Production Worker | |
802-967-5873 | PT/FT: FT, nonexempt | |
SSN: 089-74-0974 | No. of Exemptions: 1 | |
401(k) deduction: 5% | M/S: S | |
Pay Rate: $12.00/hour | ||
A-Long | Charlie Long | Hire Date: 2-1-2019 |
242 Benedict Road | DOB: 3-16-1987 | |
S. Woodstock, VT 05002 | Position: Production Worker | |
802-429-3846 | PT/FT: FT, nonexempt | |
SSN: 056-23-4593 | No. of Exemptions: 2 | |
401(k) deduction: 2% | M/S: M | |
Pay Rate: $12.50/hour | ||
B-Shang | Mary Shangraw | Hire Date: 2-1-2019 |
1901 Main Street #2 | DOB: 8-20-1994 | |
Bridgewater, VT 05520 | Position: Administrative Assistant | |
802-575-5423 | PT/FT: PT, nonexempt | |
SSN: 075-28-8945 | No. of Exemptions: 1 | |
401(k) deduction: 3% | M/S: S | |
Pay Rate: $11.00/hour | ||
B-Lewis | Kristen Lewis | Hire Date: 2-1-2019 |
840 Daily Hollow Road | DOB: 4-6-1960 | |
Bridgewater, VT 05523 | Position: Office Manager | |
802-390-5572 | PT/FT: FT, exempt | |
SSN: 076-39-5673 | No. of Exemptions: 3 | |
401(k) deduction: 4% | M/S: M | |
Pay Rate: $32,000/year | ||
B-Schwa | Joel Schwartz | Hire Date: 2-1-2019 |
55 Maple Farm Way | DOB: 5-23-1985 | |
Woodstock, VT 05534 | Position: Sales | |
802-463-9985 | PT/FT: FT, exempt | |
SSN: 021-34-9876 | No. of Exemptions: 2 | |
401(k) deduction: 5% | M/S: M | |
Pay Rate: $24,000/year base plus | ||
3% commission per case sold | ||
B-Prevo | Toni Prevosti | Hire Date: 2-1-2019 |
10520 Cox Hill Road | DOB: 9-18-1967 | |
Bridgewater, VT 05521 | Position: Owner/President | |
802-673-2636 | PT/FT: FT, exempt | |
SSN: 055-22-0443 | No. of Exemptions: 5 | |
401(k) deduction: 6% | M/S: M | |
Pay Rate: $45,000/year | ||
Student Success | Student B. Success | Hire Date: 2-1-2019 |
1644 Smitten Rd | DOB: 1-1-1991 | |
Woodstock/VT/05001 | Position: Accounting Clerk | |
(555) 555-5555 | PT/FT: FT, nonexempt | |
SSN: 555-55-5555 | No. of Exemptions: 2 | |
M/S: S | ||
Pay Rate: $34,000/year |
The departments are as follows:
Department A: Agricultural Workers
Department B: Office Workers
The first day of work for Prevosti Farms and Sugarhouse for all employees is February 4, 2019. February 8 is the end of the first pay period and includes work completed during the week of February 48. Compute the employee gross pay using 35 hours as the standard workweek for all employees except Mary Shangraw, who works 20 hours per week and receives overtime for any time worked past that point. The other hourly employees receive overtime pay when they work more than 35 hours in one week. Joel Schwartz has made $5,000 in case sales at a 3 percent commission rate during the 2/9 pay period. Joel Schwartz's sales are subject to commissions for the 2/22 pay period of $7,500. Remember that the employees are paid biweekly. Note that the first pay period comprises only one week of work, but the pay frequency for federal income tax purposes is biweekly.
Name | Annual Salary | Notes | ||||
Millen | $ | 35,000 | ||||
Lewis | $ | 32,000 | ||||
Schwartz | $ | 24,000 | plus 3% Commission on Sales | |||
Prevosti | $ | 45,000 |
The hours for the nonexempt employees are as follows:
Name | Hourly rate | Hours worked 2/42/8 | ||||
Towle | $ | 12.00000 | 35 hours | |||
Long | $ | 12.50000 | 40 hours | |||
Shangraw | $ | 11.00000 | 21 hours | |||
Success (You) | $ | 18.68132 | 35 hours |
Name | Hourly rate | Hours worked 2/11-2/22 | ||||
Towle | $ | 12.00000 | 80 hours | |||
Long | $ | 12.50000 | 70 hours | |||
Shangraw | $ | 11.00000 | 42 hours | |||
Success (You) | $ | 18.68132 | 71 hours |
Although the company has already established medical and retirement plan benefits, Toni Prevosti wants to consider other benefits to attract employees. As the companys accountant, you have been tasked with annotating employee earnings records with benefit elections for each employee. The gym membership is for a dedicated facility for employees and spouses. The following sheet contains details of employee choices. These costs are employer paid and will take effect on the first pay period of March.
Employee | Flex-Time | Child Care Assistance (under $5,000 annually) | FSA (annual) | Educational Assistance ($4,000 annually) | Life Insurance (at 1% of annual salary value) | Long-Term Care Insurance ($15 per period) | Gym Membership ($15 per month) | |
Millen | Yes | Yes | $ | 500.00 | No | Yes | No | Yes |
Towle | No | No | $ | 1,200.00 | Yes | No | No | Yes |
Long | Yes | Yes | $ | 700.00 | Yes | Yes | No | Yes |
Shangraw | Yes | No | $ | 200.00 | No | Yes | No | No |
Lewis | No | No | $ | 1,600.00 | No | Yes | Yes | No |
Schwartz | No | No | $ | 450.00 | Yes | Yes | No | Yes |
Prevosti | Yes | No | $ | 900.00 | No | Yes | No | Yes |
Student | No | No | $ | 300.00 | Yes | No | No | Yes |
Annotate the Employee Earning Records with payroll-related benefit elections. The amount per period should be included in the record. As an example, if an employee elected to contribute $1,300 to his or her FSA, the period payroll deduction would be $1,300/26, or $50. The estimated yealy earnings used to compute the life insurance deduction for the hourly employees is: (hourly wages times number of hours worked per week 52 weeks). Multiply the yearly earnings by 1% and divide by 26 pay periods to get the insurance per pay period. Example: Employee earns $11 per hour and works 20 hours a week. ($11 20 52) = $11,440 estimated annual earnings. $11,440 1% = $114.40. $114.40 / 26 = $4.40 insurance amount per pay period.
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