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Required information (The following information applies to the questions displayed below.) The following information is available for the employees of Webber Packing Company for the
Required information (The following information applies to the questions displayed below.) The following information is available for the employees of Webber Packing Company for the first week of January, Year 1: 1. Kayla earns $28 per hour and 1/2 times her regular rate for hours over 40 per week. Kayla worked 52 hours the first week in January. Kayla's federal income tax withholding is equal to 15 percent of her gross pay. Webber pays medical insurance of $50 per week for Kayla and contributes $50 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,600. Paula's federal income tax withholding is 18 percent of her gross pay. Webber pays medical insurance of $80 per week for Paula and contributes $100 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $60 per week for Paula. Assume the Social Security tax rate is 6 percent on the first $130,000 of salaries, and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of the first $7,000 of salary for each employee. b. Compute the net pay for both Kayla and Paula for the first week in January. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Kayla Paula Net pay
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