Thunder Graphics Desktop Publishing has four employees. They are paid on a

Thunder Graphics Desktop Publishing has four employees. They are paid on a weekly basis with overtime paid for all hours worked over 40. The overtime rate is 1½ times the regular hourly rate of pay. The names of the employees and other information needed to prepare the payroll are as follows. 

During the week ended Oct. 15, Gongas worked 41 hours, Sullivan worked 39¼ hours, Jackson worked 42½ hours, and Hoffman worked 38¾ hours. 


Instructions

On the form provided in your working papers:

1. Prepare a payroll register. The date of payment is October 15. List employees in alphabetical order by last name.

a. Compute FICA taxes at 6.2% for social security and 1.45% for Medicare.

b. Use the tax table in Chapter 12 to determine federal income taxes. The state income tax is 1.5% of gross earnings.

c. All employees have a deduction for hospital insurance that is $4.75 for single employees and $7.85 for married employees.

d. Union members pay weekly dues of $3.25.

2. After the payroll information is entered in the payroll register, total the columns and check the accuracy of the totals.