590 Chapter 15 Payroll and Inventory
- Steve is paid 10% commission on sales. In the month of October, he received a $1,250 draw and made sales totaling
$18,350. Calculate his gross pay for October. - A fi nancial services company pays its representatives a commission based on the investment management fees that
they generate. The commission schedule is:
Monthly Fees Commission Percent0–$2,500 40%
$2,500–$10,000 45%
$10,000 52%Bill generated $13,450 in investment management fees last month. Calculate his monthly commission.
- A fi nancial services company pays its representatives a salary plus a commission based on the investment management
fees that they generate. The commission schedule is:
Monthly Fees Commission Percent0–$2,000 16%
$2,000–$5,000 25%
$5,000 37%Chad generated $8,450 in investment management fees last month. He is also paid a $17,500 annual salary.
Calculate his gross monthly pay for last month.
- A radio station pays its advertising executives a $21,500 annual salary plus a commission of 17.5% on sales over
$25,000 on a month.
a. Laurie made sales of $24,943 in May. Calculate her gross pay for that month.
b. Laurie made sales of $78,900 in June. Calculate her gross monthly pay for that month.
E. Net Pay
- Jonathan’s gross pay for the last 2 weeks was $993.15. He had deductions of $67.55 for health insurance, $59.75
for federal and $12.16 for state income taxes, $65.08 for FICA, and $75 for retirement plan contributions. Calculate
Jonathan’s net pay. - Enrico earns a $31,909 annual salary and is paid semimonthly. He has semimonthly deductions of $92.57 for health
and dental insurance, $50 for 401(k) contributions, and he contributes $2,750 annually to a child care FSA. His income
tax withholding is $101.05 for federal and $33.03 for state. His FICA is $90.80. Calculate his net semimonthly pay.
18–23. Calculate the net biweekly pay for each of the employees listed in the table at the top of page 591.
F. Cafeteria Plans
For Exercises 24 to 26, use the Oswegatchie Perambulator Corp. cafeteria plan selection form from pages 586–587.
- Calculate the benefi t payroll deduction for someone who selects family PPO coverage, family dental, additional
disability coverage, life insurance for 1 salary, the legal services plan, and 4 extra vacation days.