unit 5 -short answers
17. Music World has nine employees. The employees are paid weekly, with overtime after 40 hours per week. The overtime rate is 1 1/2 times the regular pay rate. Payroll information for the week ending June 12th is as follows:
18. Scoot Rentals pays employees an hourly wage or a salary plus commission based on rental revenue. Hourly wage employees can earn overtime. The overtime rate for hours worked over 40 in a week is 1 1/2 times more that the regular hourly rate of pay.
For each of the following employees, determine the total gross pay for the pay period.
Earns an hourly wage of $7.20
Worked 45 hours this week
Receives a salary of $300 per week, plus a 2% commission on rental revenue
Had rental revenue of $760 this week
Earns an hourly wage of $8.50
Worked 40 hours this week
Receives a salary of $200 per week plus 2% commission
Had rental revenue of $1,235 this week.
19. Sandy Dry Cleaners has four employees. They are paid on a weekly basis, with overtime paid for hours worked over 40 hours in a week. The overtime rate is 1 1/2 times the regular rate of pay. The payroll information is as follows:
During the week ending January 9th, James worked 39 hours, Gibson worked 41 hours, and David and John each worked 36 hours.
a. Prepare a payroll register for the week ending January 9th. The date of payment is October 9. List employees in alphabetical order by last name. Use the tables on page 10, section 2, of Unit 5 to determine the Federal Income Tax withholding. The rate for the State Income Tax is 2%. Compute the Social Security Tax at 6.2% and Medicare Tax at 1.45%. Union members pay weekly dues of $4.50. Both Gibson and John had $6.75 deducted for health and hospital insurance.
b. Total the amount columns. Subtract total deductions from total earnings. Does the result equal the sum of the Net Pay column? If not, find and correct any error(s) in the payroll register.
20. David & Co. has seven employees who are paid weekly. For hourly wage employees, overtime is paid at 1 1/2 times more than the regular rate of pay, for hours worked over 40 in a week.
Mary, the office manager, is paid a salary of $375.00 per week plus a bonus of 3 % of all revenue over $6,000 per week. Stan, an office assistant, is paid a salary of $250.00 per week plus 5% of all telephone sales made in the office.
David, the office secretary, is paid a salary of $230.00 per week. Justin and William, placement workers, are paid an hourly wage of $8.95. Fernando is also a placement worker but is paid a commission of $35.00 for every job placement completed. Ryan, a part-time maintenance worker, is paid $6.75 per hour. For the week ending October 24th, the office recorded the following payroll information:
Total office sales for the week were $8,420.00.
Justin worked for 38 1/2 hours.
William worked for 41 1/4 hours.
Phone sales for the week were $1,375.00.
Fernando made seven job placements.
Ryan worked a total of 23 hours.
Calculate the gross earnings for the workers at David & Co. for the week ending October 24th. Analyze and identify the employee who had the highest gross earnings.
21. David & Co. pays its employee twice a month. Employee earnings and tax amounts for the pay period ending December 31st are:
1. Prepare the general journal records for the payment of the payroll.
2. Post the payroll transaction to the general ledger.
3. Compute the payroll tax expense forms and journalize the entry to record the employer’s payroll taxes using these rates:
a. Social Security, 6.2%
b. State Unemployment, 2%
c. Medicare, 1.45%
d. Federal unemployment, 0.8%
e. No employee has reached the taxable earnings limit
4. Post the entry to the general journal.
5. Journalize and post the entries for the payment of payroll liabilities.
6. Analyze and calculate the employer’s total payroll-related expense for the pay period.