Diego Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:

	Consultant		Computer Programmer		Administrator
Regular earnings rate	$3,800 per week		$38 per hour		$42 per hour
Overtime earnings rate*	Not applicable		2 times hourly rate		1.5 times hourly rate
Number of withholding allowances	1		2		2
* For hourly employees, overtime is paid for hours worked in excess of 40 hours per week.

For the current pay period, the computer programmer worked 55 hours and the administrator worked 52 hours. The federal income tax withheld for all three employees, who are single, can be determined from the wage bracket withholding table in Exhibit 3. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and one withholding allowance is $75.

Determine the gross pay and the net pay for each of the three employees for the current pay period. If required, round your answers to two decimal places.

	Consultant	Computer Programmer	Administrator
Gross pay	$ ???	$ ???	$ ???
Net pay	$ ???	$ ???	$ ???

Answer rating: 100% (QA)

Consultant Administrator Computer programmer 3840 hrs 1520 55 hrs 40 hrs382 1140 4240 ... View the full answer