Description
Chapter 6 Project
Sally is a shift manager at the Generic Jeans store.Sally earns $9.85 per hour. Overtime pays time-and-a-half, and is paid for anything over 40 hours per week. As an incentive to provide good customer service, she is also paid 10% commission, with a $1000 weekly quota on her personal sales.Because she is a shift manager, she also receives an override commission of 1% (no quota).Here is Sally’s hours, sales and returns for one week.
|
| M | T | W | Th | F | S | S |
| Hours | 7.5 | 7.75 | 8 | 9.25 | 0 | 10 | 0 |
| Sally’s Sales | $520 | $630 | $416 | $728 | $0 | $1539 | $0 |
| Sally’s Returns | $23 | | $40 | | | $51 | |
| Dept Sales | $1921 | $2301 | $1799 | $2007 | $2619 | $4391 | $3204 |
| Dept Returns | $187 | $67 | $120 | $78 | $105 | $210 | $112 |
Sally would like to know what percentage of her paycheck will be deducted for taxes.Your task it to calculate this percentage, by finding each of the following. You will need Sally’s W-4 (for number of allowances and marital status) and the State and Federal Income Tax Withholdings tables, which are provided.
- Regular Hourly Wages
- Overtime Hourly Wages
- Commission Wages
- Total Gross Earnings
- FICA deduction (Assume 6.2%)
- Medicare deduction (Assume 1.45%)
- Federal Income Tax Withholding (using the percentage method)
- State Income Tax Withholding (using the percentage method)
- State disability insurance (Assume 1%)
- Net Pay
- What percent of her gross earnings were deducted from her pay check?
Your project must:
- be typed.
- be well organized.
- contain all calculations.
- include explanations of your calculations, where your numbers come from, etc. Use complete sentences and include punctuation.
For example:
“In order to compute Sally’s regular hourly wages, I first totaled the number of hours she worked all together.
7.5 + 7.75 + 8 + 9.25 + 10 = 42.5 hours
The next step is to find the number of hours she worked of overtime.So, I ….”
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Explanation & Answer
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Answers
Income
In order for us to compute the total weekly hours, we added up all the number of hours worked
on each day for the week in question.
7.5 + 7.75 + 8 + 9.25 + 10 = 42.5 hours
The next step is to compute the number of hours that she worked overtime. As noted, overtime is
any number of hours that is above 40 hours. Thus we subtract 40 hours from the actual hours
worked
42.5-40 = 2.5 Overtime hours
Thus the total income based on the number of hours will be computed as follow
For the regular 40 hours the hourly rate is $9.85
Thus the regular income will be computed as follow
40 ...
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