At Darden Co the office workers are employed for a 40hour wo

At Darden Co., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1½ times the regular hourly rates.

1) Calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime earnings,(d) FICA taxable wages-OASDI, (e) FICA taxes to be withheld-OASDI & HI for the week ended December 29, 2017. Also, determine the total for each of these items for all employees. Assume that there are 52 weekly payrolls in 2017.

2) Calculate the Employer’s OASDI Tax and HI Tax for this period.

Employee pay and hours worked for are provided on the working paper on the next page. You may use the Excel version instead if you wish.

At Darden Co., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1½ times the regular hourly rates.

1) Calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime earnings,(d) FICA taxable wages-OASDI, (e) FICA taxes to be withheld-OASDI & HI for the week ended December 29, 2017. Also, determine the total for each of these items for all employees. Assume that there are 52 weekly payrolls in 2017. 2) Calculate the Employer’s OASDI Tax and HI Tax for this period. Employee pay and hours worked for are provided on the working paper on the next page. You may use the Excel version instead if you wish.

Weekly Payroll for Period Ending December 29, 2017 OASDI Taxable Wages Cumulative Earnings @12/22 Worked Dec. 29 Regular Earni Overtime Earnings Total Earnings OASDI Tax To be Withheld HI Hours Employee Salary ngs Tax Geers, M Baker, Y Marshall, J Lee, A Bailey, Wiggins, H Totals $126,225.00 S 4,200.00 per month S 49,430.77 S 5,200.00 per month S 61,200.00 S 29,488.10 S 16,341.90 S 22,927.50 40.00 40.00 48.00 44.50 48.00 52.00 128,700.00 lper vear 12.00 lper hour 12.75 per hour 13.55 per hour Employer\'s OASDI Tax employer\'s HI Tax

Solution

Weekly Payroll for Period Ending December 29, 2017 To be Withheld Employee Salary Cumulative earnings at 12/22 Hours Worked Dec 29 Regular Earnings Overtime Earnings Total Earnings OASDI Taxable Wages OASDI Tax - 6.2% HI Tax - 1.45% Geers. M. $ 128,700.00 per year $ 126,225.00     40.00 2,475.00 2,475.00 $ 1,500.00 $   93.00 $   35.89 Baker, Y. $     4,200.00 per month $   49,430.77     40.00      969.23      969.23        969.23 $   60.09 $   14.05 Marshall, J. $     5,200.00 per month $   61,200.00     48.00 1,200.00 360.00 1,560.00     1,560.00 $   96.72 $   22.62 Lee. A. $          12.00 per hour $   29,488.10     44.50      480.00     81.00      561.00        561.00 $   34.78 $     8.13 Bailey. C $          12.75 per hour $   16,341.90     48.00      510.00 153.00      663.00        663.00 $   41.11 $     9.61 Wiggins. H $          13.55 per hour $   22,927.50     52.00      542.00 243.90      785.90        785.90 $   48.73 $   11.40 Totals - - - 6,176.23 837.90 7,014.13 $ 374.43 $ 101.70 Total hours in a year = 52 x 40 = 2080 for annual and monthly pay we calculated a hourly rate as follows 128700/2080 4200 x 12/2080 5200 x 12/2080 OASDI limit for 2017 is 127200 Employer\'s OASDI tax $             374.43 Employer\'s HI tax $ 101.70