Q Search this course Payroll Accounting: Employee Earnings and Deductions er Contents 8 E 8-5A Computing Net Pay (LO2) Mary Sue Guild works for a company that pays its employees 1% times the regular rate for all hours worked in excess of 40 per week. Guild's pay rate is $10 per hour. Her wages are subject to deductions for federal income tax, Social Security tax, and Medicare tax. She is married and claims four withholding allowances. Guild has a %-hour lunch break during an 8%-hour day. Her time card is shown below. SHOW ME HOW Name Mary Sue Guild Week Ending March 30, 20-- Day Out In Out Hours Worked Regular Overtime 12:35 12:39 T-$-3 7:57 7:52 7:59 8:00 7:56 8:00 12:05 12:09 12:15 12:01 12.05 10:31 4:33 5:05 5.30 12:45 12:30 6:31 12:34 4:30 late the fall for OO Payroll Accounting: Employee Earnings and Deductions er Contents AAA ? 7:57 7:52 7:59 8:00 7:56 8:00 12.05 1209 12:15 12:01 12.05 10:31 12:35 12:39 12:45 12.30 12:34 Complete the following for the week: - regular hours x $10 per hour (b) overtime hours x $15 per hour (c) Total gross wages (d) Federal income tax withholding (from tax tables in Figure 8-4) (e) Social Security withholding at 6.296 (0) Medicare withholding at 1.45% (g) Total withholding (h) Net pay Answer E 8-6A Journalizing Payroll Transactions @ 0 G G G 303 $347.60 451.50 481.15 490.52 691.89 041 023 US 59 Exercise 8-4A Cumul. Pay Before Current Weekly Payroll $ 22,000 Amount Over Max. Soc. Sec. Amount Subject to Soc. Sec. Current Gross Pay $1,700 4,200 Year-to-Date Soc. Sec. Earnings Maximum 23200 $118,500 50 200 118,500 Soc. Sec.. Medicare Tax Tax Withheld _Withheld los. 40 240, 60 54,000 3,925 119725 118,500 . 4,600 121,500 118,500 1,200 4000 260.4 60.90 1.325 2,600 161.20 56.0 4,000 600 37.20 66.76 117,900