4.CS: Case Study-Payroll Planning
- Page ID
- 22087
\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \) \( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)\(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\) \(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\)\(\newcommand{\AA}{\unicode[.8,0]{x212B}}\)
The Situation
As Lightning Wholesale reviews the payroll for one of its divisions, it needs to produce a report on the overall payroll for last year. The tables below list each employee along with his or her compensation for last year. The report needs to include details about each employee along with overall company figures.
The Data
Last Year's Employee Compensation Information:
| Name | Annual Salary | Hourly Wage | Average O/T Hours per Pay Period | Average Sales per Pay Period |
|---|---|---|---|---|
| Jack | $39,000 | 2 | ||
| Gail | $169,500 | |||
| Jennifer | $16.98 | 5 | ||
| Evelyn | $134,000 | |||
| Indiana | $76,500 | 3 | ||
| Hakim | $34.94 | 4 |
Per Pay Period Graduated Commission Scale:
| Commission Scale | Commission Rate |
|---|---|
| $0.00–$50,000.00 | 1.01% |
| $50,000.01–$100,000.00 | 2.98% |
| $100,000.01 and up | 4.44% |
Important Information
- A normal workweek for any employee is 7.5 hours per day from Monday through Friday.
- Lightning Wholesale pays overtime at time-and-a-half and is never open on statutory holidays.
- Lightning Wholesale issues payroll every two weeks.
- Lightning Wholesale is situated in Ontario.
- Federal and provincial income tax information can be found in Tables in Section 4.2.
- A 52-week year is assumed.
Your Tasks
- Create a report on each employee and summarize the information in a table.
- Calculate the annual regular earnings.
- Calculate the annual overtime earnings.
- Calculate the annual gross earnings
- Calculate the annual federal income taxes.
- Calculate the annual provincial income taxes.
- Calculate the employee's take-home pay after deducting taxes.
- Calculate the totals of all of the above.