a. Use the percentage method to calculate the amount of Mike'swithholding for a monthly pay period. b. Use the withholding tablesto determine the amount of Mike's withholding for the sameperiod.
a. Use the percentage method to calculate the amount of Mike'swithholding for a monthly pay period. b. Use the withholding tablesto determine the amount of Mike's withholding for the sameperiod.
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Donohue Professional Services has three employees-a consultant,a computer programmer, and an administrator. The following payrollinformation is available for each employee:
| Consultant | Computer Programmer | Administrator | ||||
| Regular earnings rate | $2,110 per week | $32 per hour | $44 per hour | |||
| Overtime earnings rate | Not applicable | 1.5 times hourly rate | 2 times hourly rate | |||
| Number of withholding allowances | 3 | 2 | 1 | |||
For the current pay period, the computer programmer worked 60hours and the administrator worked 50 hours. The federal income taxwithheld for all three employees, who are single, can be determinedby adding $340.44 to 28% of the difference between the employee'samount subject to withholding and $1,687.00. Assume further thatthe social security tax rate was 6%, the Medicare tax rate was1.5%, and one withholding allowance is $70.
Determine the gross pay and the net pay for each of the threeemployees for the current pay period. Assume the normal workinghours in a week are 40 hours. If required, round your answers totwo decimal places.
| Consultant | Computer Programmer | Administrator | |
| Gross pay | $ | $ | $ |
| Net pay | $ | $ | $ |
