Calculate Payroll For the current pay period, the computer programmer worked 60
ID: 2453236 • Letter: C
Question
Calculate Payroll
For the current pay period, the computer programmer worked 60 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined from the wage bracket withholding table in Exhibit 3. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and one withholding allowance is $70.
Determine the gross pay and the net pay for each of the three employees for the current pay period. If required, round your answers to two decimal places.
Consultant Computer Programmer Administrator Gross pay $ 3800 $ 2800 $ 2640 Net pay $ $ $Explanation / Answer
For consultant
Security tax $3800 @6% = $228
Medicare $3800@1.5% = 57
For federal tax witholding i used the following table (2015)
1789 - 3685 $355.35 plus 28%
( $3800 - 140 = $3660)
Tax $ 355.35
Excess (3660-1789)28% 523.88
Net pay = $3800 - 228 - 57 - $879.23 = $2635.77
Computer programmerSS
social security $2,800 @ 6% = $168
Medicare $2800 @ 1.5% = $42
Federal withholding ( $2800 - $140 = $2660)
tax 355.35 +{ ( 2660 - 1789) 28% }= $355.35 + $243.88
Net pay = $2800 - $168 - $42 - $599.23 = $1990.77
Administrator
Social security 2640 @6% = $158.40
Medicare = $39.60
Federal
(2640 - 70 = $2570)
$ 355.35 + ( 2570 - 1789)28% = $574.03
Net pay $2640 - $772.03 = $1867.97
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