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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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