Zolnick Enterprises has two hourly employees, Kelly and Jon. Both employees earn overtime at the rate of 1 ½ times the hourly rate for hours worked in excess of 40 per week. Assume the Social Security tax rate is 6 percent on the first $110,000 of wages and the Medicare tax rate is 1.5 percent on all earnings. Federal income tax withheld for Kelly and Jon was $260 and $220 respectively. The following information is for the first week in January 2016:
Employee Hours Worked Wage Rate per Hour
Kelly 54 $32
Jon 44 $26
Required
a. Calculate the gross pay for each employee for the week.
Gross Pay
Kelly
Jon
b. Calculate the net pay for each employee for the week. (Round intermediate calculations and final answers to 2 decimal places.)
Net Pay Kelly Jon