Question

Prevosti Farms and Sugarhouse pays its employees according to their

job classification. The following employees make up Sugarhouse's staff:
 
Employee
NumberName and AddressPayroll information   A-MilleThomas MillenHire Date: 2-1-20181022 Forest School RdDOB: 12-16-1982Woodstock, VT 05001Position: Production Manager802-478-5055PT/FT: FT, exemptSSN: 031-11-3456No. of Exemptions: 4401(k) deduction: 3%M/S: M Pay Rate: $35,000/year  A-TowleAvery TowleHire Date: 2-1-20184011 Route 100DOB: 7-14-1991Plymouth, VT 05102Position: Production Worker802-967-5873PT/FT: FT, nonexemptSSN: 089-74-0974No. of Exemptions: 1401(k) deduction: 5%M/S: S Pay Rate: $12.00/hour  A-LongCharlie LongHire Date: 2-1-2018242 Benedict RoadDOB: 3-16-1987S. Woodstock, VT 05002Position: Production Worker802-429-3846PT/FT: FT, nonexemptSSN: 056-23-4593No. of Exemptions: 2401(k) deduction: 2%M/S: M Pay Rate: $12.50/hour  B-ShangMary ShangrawHire Date: 2-1-20181901 Main Street #2DOB: 8-20-1994Bridgewater, VT 05520Position: Administrative Assistant802-575-5423PT/FT: PT, nonexemptSSN: 075-28-8945No. of Exemptions: 1401(k) deduction: 3%M/S: S Pay Rate: $10.50/hour  B-LewisKristen LewisHire Date: 2-1-2018840 Daily Hollow RoadDOB: 4-6-1960Bridgewater, VT 05523Position: Office Manager802-390-5572PT/FT: FT, exemptSSN: 076-39-5673No. of Exemptions: 3401(k) deduction: 4%M/S: M Pay Rate: $32,000/year  B-SchwaJoel SchwartzHire Date: 2-1-201855 Maple Farm WayDOB: 5-23-1985Woodstock, VT 05534Position: Sales802-463-9985PT/FT: FT, exemptSSN: 021-34-9876No. of Exemptions: 2401(k) deduction: 5%M/S: M Pay Rate: $24,000/year base plus 3% Commission on Sales  B-PrevoToni PrevostiHire Date: 2-1-201810520 Cox Hill RoadDOB: 9-18-1967Bridgewater, VT 05521Position: Owner/President802-673-2636PT/FT: FT, exemptSSN: 055-22-0443No. of Exemptions: 5401(k) deduction: 6%M/S: M Pay Rate: $45,000/year  B-StudentStudent SuccessHire Date: 2-1-20181644 Smitten RoadDOB: 1-1-1991Woodstock, VT 05001Position: Accounting clerk555-555-5555PT/FT: FT, nonexemptSSN: 555-55-5555No. of Exemptions: 2401(k) deduction: 2%M/S: S Pay Rate: $34,000/year
 
The departments are as follows:
Department A: Agricultural Workers
Department B: Office Workers
 
Initial pre-tax deductions for each employee are as follows:
 
NameDeductionThomas MillenInsurance: $155/paycheck 401(k): 3% of gross pay Marital Status: Married  Avery TowleInsurance: $100/paycheck 401(k): 5% of gross pay Marital Status: Single  Charlie LongInsurance: $155/paycheck 401(k): 2% of gross pay Marital Status: Married  Mary ShangrawInsurance: $100/paycheck 401(k): 3% of gross pay Marital Status: Single  Kristen LewisInsurance: $155/paycheck 401(k): 4% of gross pay Marital Status: Married  Joel SchwartzInsurance: $100/paycheck 401(k): 5% of gross pay Marital Status: Married  Toni PrevostiInsurance: $155/paycheck 401(k): 6% of gross pay Marital Status: Married  Student SuccessInsurance: $100/paycheck 401(k): 2% of gross pay Marital Status: Single
 
The first day of work for Prevosti Farms and Sugarhouse for all employees is February 5, 2018. February 9 is the end of the first pay period for Prevosti Farms and Sugarhouse and includes work completed during the week of February 5-9. Using the payroll register, compute the employee gross pay and net pay using 35 hours as the standard workweek for all employees except Mary Shangraw, who works 20 hours per week and receives overtime for any time worked past that point. The other hourly employees receive overtime pay when they work more than 35 hours in one week. Joel Schwartz has made $5,000 in case sales at a 3 percent commission rate during this pay period. Remember that the employees are paid biweekly. Note that the first pay period comprises only one week of work, but the pay frequency for federal income tax purposes is biweekly. Federal withholding tax should be computed using the wage-bracket tables in Appendix C. State withholding tax for Vermont is computed at 3.55 percent of taxable wages (i.e., gross pay less pre-tax deductions).
 
February 23, 2018, is the end of the final pay period for the month. Schwartz has sold $7,500 of product during this pay period at a 3 percent commission. Pay will be disbursed on February 26, 2018, and check numbers will continue from prior payroll.
 
The hours for the nonexempt employees are as follows:
 
NameHourly rateHours worked
2/5-2/9Towle$12.00000  35 hours Long$12.50000  40 hours Shangraw$10.50000  21 hours Success (You)$18.68132  35 hours NameHourly rateHours worked
2/12-2/23
Towle$12.00000  80 hours Long$12.50000  70 hours Shangraw$10.50000  42 hours Success (You)$18.68132  71 hours 
 
Required:
Complete the payroll register for this pay period and update the Employee Earnings Record form for each employee with the corresponding information. The amount per period should be included in the record. As an example, if an employee elected to contribute $1,300 to his or her FSA, the period payroll deduction would be $1,300/26, or $50. Ensure to input an hourly rate for each employee (including those that are salaried) that is rounded to 5 decimal places.
 
Benefit-related payroll deductions will take effect on the first pay period of March.
 
EmployeeFlex-timeChild care assistance
(under $5,000
annually)FSA (annual)Educational assistance
$4,000
annuallyLife insurance
(at 1% of annual
salary value)Long-term care insurance $15 per periodGym
membership
$15 per monthMillenYesYes$500.00NoYesNoYesTowleNoNo$1,200.00YesNoNoYesLongYesYes$700.00YesYesNoYesShangrawYesNo$200.00NoYesNoNoLewisNoNo$1,600.00NoYesYesNoSchwartzNoNo$450.00YesYesNoYesPrevostiYesNo$900.00NoYesNoYesStudentNoNo$300.00YesNoNoYes
 








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