Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees...
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Accounting
Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees make up Sugarhouse's staff:
Employee Number
Name and Address
Payroll information
A-Mille
Thomas Millen
Hire Date: 2-1-2017
1022 Forest School Rd
DOB: 12-16-1982
Woodstock, VT 05001
Position: Production Manager
802-478-5055
PT/FT: FT, exempt
SSN: 031-11-3456
No. of Exemptions: 4
401(k) deduction: 3%
M/S: M
Pay Rate: $36,000/year
The departments are as follows:
Department A: Agricultural Workers
Department B: Office Workers
Initial pre-tax deductions for each employee are as follows:
Name
Deduction
Thomas Millen
Insurance: $105/paycheck
401(k): 3% of gross pay
Marital Status: Married
The first day of work for Prevosti Farms and Sugarhouse for all employees is February 6, 2017. February 10 is the end of the first pay period for Prevosti Farms and Sugarhouse and includes work completed during the week of February 6-10. 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 $2,200 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 witholding tax for Vermont is computed at 3.55 percent of taxable wages (i.e., gross pay less pre-tax deductions).
February 24, 2017, is the end of the final pay period for the month. Schwartz has sold $3,300 of product during this pay period at a 3 percent commission. Pay will be disbursed on February 27, 2017, and check numbers will continue from prior payroll.
The hours for the nonexempt employees are as follows:
Employee
Flex-time
Child care assistance (under $5,000 annually)
FSA (annual)
Educational assistance $4,000 annually
Life insurance (at 1% of annual salary value)
Long-term care insurance $15 per period
Gym membership $15 per month
Millen
Yes
Yes
$
500.00
No
Yes
No
Yes
Married Single(M or S) o0l5l 5courity Number Pay RalQ (Hourly. Yearly, Yearty Commission Pasiton $38,000-ar . Long-em e Gym 1lk) LongmsrFodra FICA) Gym t Pay Net Pay Gros: Pay
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