PSc 28 Calculate Gross Pay with Bonuses Calculate gross pay

PSc 2-8 Calculate Gross Pay with Bonuses Calculate gross pay for each of the following employees. All are paid an overtime wage rate that is 1.5 times their respective regular wage rates. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1: Manny Johnson earns $9.25/hour. During the most recent week, he receives a discretionary bonus of $1,500 and works 44 hours. Gross Pay: $ 1925.50

2: Belinda Marshall earns $15/hour. During the most recent week, she receives a nondiscretionary bonus of $3,500 and works 48 hours. Gross Pay: $

3: Jaden Brown earns $9.50/hour. During the most recent week, he receives a nondiscretionary bonus of $1,000 and works 49 hours. Gross Pay: $

4: Barry Barnes earns $11.25/hour. During the most recent week, he receives a nondiscretionary bonus of $4,200 and works 44 hours. Gross Pay: $

Solution

Solution 1:

Regular rate of manny johnson = $9.25 hours

Overtime rate = 9.25*1.5 = $13.875

Let overtime hours is X

Therefore Gross pay:

[(44-x) * 9.25] + (x*13.875) + 1500 = $1925.50

407 - 9.25X + 13.875X + 1500 = $1925.50

4.625 X =18.5, X = 4 hours

Overtime hours is 4 and regular hours = 44 -4 =40 hours per week

Solution 2:

Belinda hourly wage rate = $15/hour

Total hours worked = 48 hours

Belinda regular pay = Hourly pay + Non discretionary bonus = (48*15) + $3,500 = $4,220

Belinda regular rate = $4,220 / 48 = $87.92

Belinda overtime rate = $87.92*1.5 = $131.88

Belinda Gross pay = (Regular hours * regular rate) + (Overtime hours * overtime rate) = (40*87.92) + (8*131.88) = $4,571.84

Solution 3:

Jaden hourly wage rate = $9.50/hour

Total hours worked = 49 hours

Jaden regular pay = Hourly pay + Non discretionary bonus = (49*9.50) + $1,000 = $1,465.50

Jaden regular rate = $1,465.50 / 49 = $29.91

Jaden overtime rate = $29.91*1.5 = $44.86

Jaden Gross pay = (Regular hours * regular rate) + (Overtime hours * overtime rate) = (40*29.91) + (9*44.86) = $1,600.14

Solution 4:

Barry hourly wage rate = $11.25/hour

Total hours worked = 44 hours

Barry regular pay = Hourly pay + Non discretionary bonus = (44*11.25) + $4,200 = $4,695

Barry regular rate = $4,695 / 44 = $106.70

Barry overtime rate = $106.70*1.5 = $160.05

Barry Gross pay = (Regular hours * regular rate) + (Overtime hours * overtime rate) = (40*106.70) + (4*160.05) = $4,908.02