Accounting and Finance Foundations

Unit 8

Accounting and Finance Foundations Unit 8: Payroll 663

Payroll

Chapter 19

Examining Paystubs

Anita Job is an executive assistant for the ABC Company. Her regular pay is $10 per hour, and her overtime

rate is $15 per hour. She is paid weekly. Her timecard indicates that she worked the following hours for the

pay period beginning on Sunday, January 20, 20YY, and ending on Saturday, January 26, 20YY. She will be

paid the following Friday (February 1, 20YY) for the week’s work.

Day Regular Time Worked Overtime Worked

Monday 8

Tuesday 8 1.5

Wednesday 8

Thursday 8

Friday 8 2

1. What are Anita’s earnings for the 40 hours of regular time that she worked? (Show your work.)


2. What are Anita’s overtime earnings for the pay period? (Show your work.)


3. What is Anita’s total gross pay for the pay period? (Show your work.)

Anita does not claim any exemptions on her W-4 and has the full amount of federal and state tax withheld

from her gross wages. She has elected not to contribute to the ABC Company’s health savings account.

Anita also has the following deducted from her gross pay:

n    State tax at 2%

n    Local tax at 2%

n    School tax at 0.5%

n    Medical insurance premium at $57.25 per pay

n    Union dues at $7.25 per pay

The ABC Company contributes $25 per pay period toward Anita’s medical insurance and $1.25 per pay

period toward Anita’s life insurance policy.

Anita earns two hours of annual leave and two hours of sick leave every pay period.

19.4.1

Student Assignment