Determine the gross pay for each employee listed below. When
necessary, round intermediate calculations and the final answer to
the nearest cent.
- Clay Jones is paid time-and-a-half for all hours over 40. He
worked 45 hours during the week. His regular pay rate is $25 per
- Mary James worked 48 hours during the week. She is entitled to
time-and-a-half for all hours in excess of 40 per week. Her regular
pay rate is $20 per hour.
- Lori Terry is paid a commission of 10 percent of her sales,
which amounted to $23,650.
- Nicole Smith’s yearly salary is $95,500. During the week, she
worked 46 hours, and she is entitled to time-and-a-half for all
hours over 40.
For tax purposes, assume that the maximum taxable earnings are
$118,500 for Social Security and $7,000 for the unemployment tax
and that all earnings are taxable for Medicare. For the payroll
register for the month of November for Shelby, Inc., determine the
taxable earnings for each employee. If an amount is zero, enter
On January 21, the column totals of the payroll register for
Great Products Company showed that its sales employees had earned
$14,960, its truck driver employees had earned $10,692, and its
office employees had earned $8,670. Social Security taxes were
withheld at an assumed rate of 6.2 percent, and Medicare taxes were
withheld at an assumed rate of 1.45 percent. Other deductions
consisted of federal income tax, $3,975, and union dues, $560.
Determine the amount of Social Security and Medicare taxes
withheld and record the general journal entry for the payroll,
crediting Salaries Payable for the net pay. All earnings were
taxable. If necessary, round intermediate calculations and the
final answer to the nearest cent. If an amount box does not require
an entry, leave it blank.
|DATE||DESCRIPTION||DOC. NO.||POST. REF.||DEBIT||CREDIT|
|Jan. 21||Sales Salary Expense|
|Driver Salary Expense|
|Office Salary Expense|
|Employees’ Federal Income Tax Payable|
|FICA Social Security Tax Payable|
|FICA Medicare Tax Payable|
|Employees’ Union Dues Payable|
|From payroll register.|