Kinh tế học - Chapter 9: Payroll

Chapter 9PayrollDefine, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periodsCalculate gross pay with overtime on the basis of timeCalculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale and salary plus commissionPayroll#9Learning Unit ObjectivesCalculating Various Types of Employees’ Gross PayLU9.1Prepare and explain the parts of a payroll registerExplain and calculate federal and state unemployment taxesPayroll#9Learning Unit ObjectivesComputing Payroll Deductions for Employees’ Pay; Employers’ ResponsibilitiesLU9.2Payroll CyclesHourly Rate of Pay; Calculation of OvertimeGross pay = Hours Employee worked x Rate per hourHourly overtime pay rate = Regular hourly pay rate x 1.5Gross pay = Earnings for 40 hours + Earnings at time-and-a-half rateHourly Rate of Pay; Calculation of OvertimeEmployee M T W Th F S TotalR Valdez 13 8.5 10 8 11.25 10.75 61.5Rate is $9.00 per hourHourly overtime pay rate = Regular hourly pay rate x 1.5Gross pay = Earnings for 40 hours + Earnings at time-and-a-half rate(40 hours x $9) + (21.5 hours x 13.5)$360 + $290.25 = $650.2561.5 – 40 = 21.5 overtime hours$9 x 1.5 = 13.50 overtime rateStraight Piece Rate Pay Straight Piece Rate PayGross pay = Number of units produced x Rate per unitRyan Foss produced 900 dolls. He is paid $.96 per doll. Calculate his gross pay900 x $.96 = $864Differential Pay ScheduleDifferential Pay ScheduleGross pay = Number of units produced x Various rates per unitLogan Company pays Abby Rogers on the basis of the following schedule:Units Amountproduced per unit1-50 $ .5051-150 .62151-200 .75Over 200 1.25Last week Abby produced 300 dolls. What is Abby’s gross pay?(50 x $.50) +(100 x $.62)+(50 x $.75) + (100 x $1.25) = $249.50Straight Commission with DrawCommission is a certain percentage of the amount a salesperson sells.Draw is an advance on the salesperson’s commissionLogan Company pays Jackie Okamoto a straight commission of 15% on her net sales (net sales are total sales less sales returns). In May, Jackie had net sales of $56,000. Logan gave Jackie a $600 draw in May. What is Jackie’s gross pay? ($56,000 x .15) = $8,400 -600 $7,800 Variable Commission ScaleDifferent commission rates for different levels of net salesUp to $35,000 4%Excess of $35,000 to $45,000 6%Over $45,000 8%Last month Jane Ring’s net sales were $160,000. What is Jane’s gross pay based on the schedule?($35,000 x .04) + ($10,000 x .06) + ($115,000 x .08) = $11,200Salary Plus CommissionGross Pay = Salary + Commission Logan Company pays Joe Roy a $3,000 monthly salary plus a 4% commission for sales over $20,000. Last month Joe’s net sales were $50,000. Calculate Joe’s gross pay.$3,000 + ($30,000 x .04) = $4,200Payroll Register Rate BaseSocial Security 6.20% $97,500Medicare 1.45 No BaseFederal Income Tax Withholding (FIT)1. Percentage Method Table 9-1,9-2 Percentage method income tax withholding tables One WithholdingPayroll Period AllowanceWeekly $ 70.19Bi weekly 140.38Semimonthly 152.08Monthly 304.17Quarterly 912.50SemiAnnually 1825.00Daily or miscellaneous (each 14.04day of the payroll period)(b) MARRIED person -if the amount of wages(after subtracting The amount of income taxwithholding allowances) is: to withhold is:Not over $154 $0Over -- But not over -- of excess over --$154 $461 10% $154$461 $1,455 $30.70 plus 15% $461$1,455 $2,785 $179.80 plus 25% $1,455$2,785 $4,165 $512.30 plus 28% $2,785$4,165 $7,321 $898.70 plus 33% $4,165$7,321 $1940.18 plus 35% $7,321PartialPercentage Method1) Locate one withholding allowance and multiply by the number of allowances employee claims2) Subtract step 1 from employees pay3) In table 9.2 locate appropriate table and compute income tax$70.19 x 2 = $140.38$2,250.00 - 140.38$2,109.62$2,109.62 -1,455.00$ 654.62Tax $179.80 + .25 ($654.62) $179.80 + 163.66 = $343.46Employers’ ResponsibilitiesFederal Unemployment Tax Act (FUTA)- 6.2% tax on the first $7,000 paid to employees as wages during the calendar year*State Unemployment Tax Act (SUTA)- 5.4% tax on the first $7,000 paid to employees as wages during the calendar year*Can be credited against the 6.2% federal rate.Assume a company has total wages of $20,000 and $4,000 of the wages are exempt from SUTA. What are the company’s SUTA and FUTA taxes if the company’s SUTA rate is 5.8% due to a poor employment record?$20,000- 4,000 (exempt wages) = $16,000 SUTA = $16,000 x .054 = $928, FUTA = $16,000 x .008 = $1286.2% FUTA5.4% SUTA credit .8% FUTA tax