Your Sales and Service company has become so successful over the past months that you have decided to hire two part-time employees to assist you with sales and office duties. In researching your computerized accounting program, you have found that it does not include the options to perform payroll calculations and print paychecks. To computerize the payroll calculations and assist you in drafting the journal entries, you decide to use Microsoft Excel for the necessary payroll functions. Complete the following using the Module 05 Payroll Transactions Written Assignment template.
Calculate payroll for Karen Rodriguez and Adam Seyd for the June 14th and June 28th payrolls. These employees are paid bi-weekly, meaning every other week. Journalize the transactions necessary to record the payroll. Address the following questions: What is the total cost to the company of having these two employees for the month of June? Calculate the cost of adding one more employee for 10 hours per week (40 hours total for June) at $15 per hour. Remember to consider the employee payroll portion as well as the employer tax obligation. Would it be more cost effective to add an additional part-time employee or to distribute the additional 40 hours needed to the current part-time employees? Explain using your calculations to justify your response. The following information will be necessary in your calculations: Employee Information Period Ending 6/14 Period Ending 6/28 Karen Rodriguez ($22 per hour) 24 hours 22 hours Adam Seyd ($19 per hour) 15 hours 20 hours Additional Tax and Withholding Information Employee Responsibility Percentage of Gross Pay Federal Income Tax 10% State Income Tax 6% FICA Tax 7.65% Employer Responsibility Percentage of Gross Pay Federal Unemployment Tax 0.8% State Unemployment Tax 3% FICA Tax 7.65%
