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Apply the following:

Round the hourly rate to 2 decimal places before calculating the overtime rate.

Round the overtime rate to 2 decimal places.

Use the minimum hourly wage of $7.25.

Use the following tax rates and taxable wage bases:

OASDI -- 6.2% on the first $142,800

HI -- 1.45% on all taxable wages

HI -- extra 0.9% on wages over $200,000 (applies to employee & self-employed)

Cupcakes Bakery is a successful bakery that has been in business for several years. The following information is relevant for payroll calculations:

The business is subject to FICA taxes.

All of the employees fall under the overtime provisions of the Fair Labor Standards Act except for Monique Pascal (the manager) and Stella Anderson (the salesperson). Monique and Stella do not get paid overtime.

Each employee is listed below with a job title, salary or other rate of pay, and method of calculating gross pay:

Employee	Job Title	Salary or Other Rate of Pay	Method of Calculating Gross Weekly Pay
Exempt Employees:
Pascal, Monique	Manager	$80,000 annual salary plus bonuses (discretionary).	Paid Weekly. If she receives a discretionary bonus, it is paid at the end of each quarter in her last paycheck of the quarter.
Anderson, Stella	Sales	$35,000 annual salary plus commission.	Paid Weekly. She receives a commission of 4% for all sales over her monthly quota of $50,000. The commission is paid in the last paycheck of each month (based on the previous months sales).
Nonexempt Employees:
Atkins, Dean	Office Clerk	$22,000 annual salary for a 37-hour workweek.	Paid Weekly. For overtime, he is paid at the regular hourly rate up to 40 hours and time-and-a-half for hours beyond 40 in any week.
Bryte, Kelly	Baker	$3,000 monthly salary for a 35-hour workweek.	Paid Weekly. For overtime, she is paid at the regular hourly rate up to 40 hours and time-and-a-half for hours beyond 40 in any week.
Hughes, Ryan	Baker	$700 per week for fluctuating workweeks.	Paid Weekly. Weekly pay is $700 for working fluctuating workweeks. For overtime, he is paid using a half rate (based on total hours worked) for the hours over 40.
Perry, Leslie	Assembly	$.75 for each cupcake she decorates and wraps.	Paid Weekly. Paid $.75 per cupcake. For overtime, she is paid using a half rate (based on total hours worked) for the hours over 40.
Spears, Lynette	Staff	Lynette is a floater. She does baking and office work. She is paid $17 per hour for baking and $11 per hour for office work.	Paid Weekly. Paid $17 per hour for baking and $11 per hour for office work. For overtime, she is paid using an average half rate for the hours over 40.

Additional information:
*It is the end of the year and the bakery has been busy. All employees have been working overtime.
*In the table below, you have been given the cumulative earnings for each employee as of December 24th (through the 51st pay period of the year).
*In the table below, the hours worked by each employee during the current pay period are listed in column C.
Additional information for the two EXEMPT employees:
*Monique Pascal just found out that the owners have decided to give her a $25,000 quarterly bonus. The bonus is to be paid on December 31st along with her regular weekly earnings.
*Stella Anderson had sales of $64,000 in November. Her commission from these sales will be paid in the December 31st pay period along with her regular weekly earnings.

Required:

Use the information presented above and in the Excel spreadsheet to complete the Payroll Register for the December 31st pay period. The Payroll Register is in the Excel spreadsheet.

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