Using the Following Information, Compute This Week's Take Home Pay

question 24

Essay

Using the following information, compute this week's take home pay and deductions for each employee. Use an Income Tax rate of 15% for Letitia and Paulo; an Income Tax rate of 22% for Steve and Catriona.
$$\begin{array} { l c c c } \text { Employee } & \begin{array} { c } \text { Earnings } \\\text { YTD }\end{array} & \begin{array} { c } \text { Earnings } \\\text { this Week }\end{array} & \begin{array} { c } \text { Medical } \\\text { Premiums }\end{array} \\\text { Letitia } & 20,000 & 800 & 10 \\\text { Paulo } & 16,000 & 400 & 10 \\\text { Steve } & 36,000 & 900 & 10 \\\text { Catriona } & 53,825 & 1,075 & 0\end{array}$$

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Definitions:

Standard Costs

Predicted costs for performing a task under normal conditions, used for budgeting and measuring performance.

Work in Process

Inventory consisting of items that are in the production process but are not yet completed, indicating partially finished goods.

Direct Labor

The labor costs directly associated with the manufacture of products or delivery of services.

Standard Costs

The expected costs associated with producing a product or performing a service, used for budgeting and performance analysis.