Employee Earnings Record Mary’s Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20—, are given. Employees are paid 1½ times the regular rate for working over 40 hours a week.
NameNo. of
AllowancesMarital
StatusTotal Hours
Worked Mar. 16–22
RateTotal Earnings
Jan. 1–Mar. 15
Bacon, Andrea4M44$14.00$6,300.00
Cole, Andrew1S4015.006,150.00
Hicks, Melvin3M4413.505,805.00
Leung, Cara1S3614.005,600.00
Melling, Melissa2M4014.505,945.00
Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Bacon and Leung have $14 withheld and Cole and Hicks have $7 withheld for health insurance. Bacon and Leung have $18 withheld to be invested in the travel agencies credit union. Cole has $39.25 withheld and Hicks has $19.00 withheld under a savings bond purchase plan.
Mary’s Luxury Travel’s payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423.
Andrew Cole, employee number 62, is employed as a manager in the ticket sales department. He was born on May 8, 1986, and was hired on June 1 of last year. His Social Security number is 544-67-1283. He lives at 28 Quarry Drive, Vernon, CT, 06066.
Required:
For the week ended March 22, complete an employee earnings record for Andrew Cole. (Insert earnings data only for the week of March 22.)
Employee Earnings Record for Period Ended March 22 20--
Earnings Taxable Earnings Deductions
20 --
Period
Ended
Regular
Overtime
Total
Cumulative
Total
Unemploy.
Comp.
Social
Security Federal
Income Tax Social
Security Tax
Medicare
Tax
City Tax
Health
Insurance
Other
Total
Ck. No.
Amount
3/8
3/15
3/22
3/29
Gender
Department
Occupation
Social Security No.
Marital Status
Allowances
Pay Rate
Date of Birth
Date Hired
Name/Address
Emp. No.
M Ticket Sales Manager 544-67-1283 S 1 $15.00 5/8/86 6/1/-- Andrew Cole 62
28 Quarry Drive
Vernon, CT, 06066
Feedback
Enter earnings in the first six columns. The deduction columns begin with Federal Income Tax and the total column is for total deductions. The check amount is given and the net amount is current period earnings less deductions.