1. Use IF functions to calculate the regular pay and overtime pay based on a regular 40-hour workweek in cells E5 and F5. Pay overtime only for overtime hours. Calculate the gross pay based on the regular and overtime pay. Abram's regular pay is $398. With 8 overtime hours, Abram's overtime pay is $119.40. 2. Create a formula in cell H5 to calculate the taxable pay. Multiply the number of dependents by the deduction per dependent and subtract that from the gross pay. With two dependents, Abram's taxable pay is $417.40.
3. Use a VLOOKUP function in cell I5 to identify and calculate the federal withholding tax. With a taxable pay of $417.40, Abram's tax rate is 25% and the withholding tax is $104.35. The VLOOKUP function returns the applicable tax rate, which you must then multiply by the taxable pay.
4. Calculate FICA in Cell J5 based on gross pay and the FICA rate, and calculate the net pay in cell K5.
5. Copy all formulas down their respective columns.
6. Use Quick analysis tools to calculate the total regular pay, overtime pay, gross pay, taxable pay, withholding tax, FICA, and net pay on row 17.
7. Apply accounting number format to the range C5:C16. Apply accounting number format to the first row of monetary data and to the total row. Apply the comma style to the monetary values for the other employees. Underline the last employee's monetary values and use the format cells dialog box to apply top and double bottom borders for the totals.
8. Insert appropriate functions to calculate the average, highest, and lowest values in the summary statistics area (the range 121:K23) of the worksheet. Format the # of hours calculations as number format with one decimal and the remaining calculations with accounting number format.
9. Insert a new sheet named overtime. List the number of overtime hours for the week. Calculate the yearly gross amount spent on overtime assuming the same number of overtime hours per week. Add another row with only half the overtime hours (using a formula). What is your conclusion and recommendation on overtime? Format the worksheet.