Tallpete Lawn Co had a great first month in November! To keep up with the demand, Katie has decided to hire an employee. After advertising the position, Katie has decided to hire Joe Blackthumb to assist her in the lawn care business. Joe was officially hired to begin work on December $1$st$.$ Joe will get paid on the $15$th and the last day of the month $($Semi$-$monthly$).$ Since it is December and there is not a lot of lawn care needs right now, Joe will only be working the first and third weeks of the month.

Joe will earn his regular hourly wage up to the first $40$ hours$/$week$.$ Any hours worked over $40$ hours are earned at the overtime hourly wage.

The state of Illinois has a flat $3\mathrm{.}75\%$ state income tax.

Use the Federal Withholding Tables posted in blackboard to compute the federal income tax withholding for each employee. Use the Wage Bracket Method Tables that take into account withholding allowances.

Social Security Tax is $6\mathrm{.}2\%$ and Medicare Tax is $1\mathrm{.}45\%.$ All employees earn less than $$117,000$ in taxable earnings

Federal Unemployment Taxes are $6\mathrm{.}2\%$ and State Unemployment Taxes are $0\mathrm{.}8\%.$

Create in excel a payroll register for both pay periods ending $12/15/16$ and $12/31/16.$ Set up the following columns: Date, Name, Hours, Regular Hours, Hourly Wage, Regular Earnings, Overtime Hours, Overtime Wages, Overtime Earnings, Gross Pay, Marital Status, Federal Allowances, State Tax, Federal Income Tax, Social Security Tax, Medicare Tax, Total Tax Withheld, $401($k$)$ deduction, Insurance deduction, Net Pay.

Use cell references and formulas to compute amounts when possible.

After completing the register, type out the journal entries for periods for both the employees and employer paid taxes.

Full Name: Joseph Blackthumb

Start Date: $12/1/2016$

Marital status: Single

Regular Hourly Wage: $$20/$hour

Overtime Hourly Wage: $$25/$hour

Federal Allowances: $1$

FICA Taxes: $1\mathrm{.}45\%$ Medicare and $6\mathrm{.}2\%$ Social Security

$401($k$)$ Contribution: $3\%$ of gross earnings

Insurance Deduction: $$50$ per pay period

Hours worked from $12/1-12/7$: $49$

Hours worked from $12/16-12/22$: $54$