glencoe_accounting_chp12

# One company bryson consulting offers you a starting

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Unformatted text preview: fers you a starting salary of \$30,000 with a 2% bonus (on salary) if you can bring 10 new clients into the firm. The other company, The Patterson Group, offers a salary of \$25,000 plus a 3% commission on all new client billings. If you bring 10 new clients to Bryson, what would the amount of your bonus be? How much in new business would you have to bring to Patterson to equal the bonus from Bryson? Which offer seems to have the higher earnings potential? Why? Problem 12–1 Calculating Gross Earnings Cleary’s Music Center has nine employees. The employees are paid weekly with overtime after 40 hours per week. The overtime rate is 1½ times the regular rate of pay. Payroll information for the week ending June 12 follows: Employee David Clune Richard Lang Jane Longas Betty Quinn John Sullivan Kelly Talbert Gene Trimbell Heidi Varney Kevin Wallace Pay Rate \$6.95 \$7.80 \$7.25 \$8.30 \$8.30 \$7.50 \$9.75 \$8.75 \$9.25 Hours 331⁄2 38 43 441⁄4 391⁄2 40 421⁄2 341⁄4 46 Instructions Prepare a form similar to the one that follows. Calculate regular earnings, overtime earnings, and gross earnings for each employee. Employee Pay Rate Clune, David 314 Total Hours 331/2 \$6.95 Regular Overtime Earnings Earnings \$232.83 –0– Gross Earnings \$232.83 Chapter 12 Payroll Accounting 308-337_CH12_868829.indd 314 9/15/05 11:44:46 AM SECTION 2 Payroll Deductions Whether you work at Target, McDonald’s, or CompUSA, your earnings and deductions are determined in the same way. In this section you will compute the amounts withheld from an employee’s earnings. The first time you received a payroll check, you were probably surprised that its amount was less than you expected. Various amounts had been taken out of your gross earnings. An amount subtracted from gross earnings is a deduction . Deductions include those required by law and those an employee wishes to have withheld from earnings. Main Idea Deductions Required by Law ® the deductions required What Amounts Must Be Deducted from Earnings? An employer is requ...
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## This note was uploaded on 01/16/2014 for the course BUSINESS Accounting taught by Professor Dr.stevenhall during the Fall '13 term at Del Mar College.

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