The principles and practices of payroll accounting discussed in Chapter 2 are applied in the Practical Problems as shown below. Principle or Practice Practical Problem No. (A and B) 1. Paying less than the minimum wage (exception to the FLSA) 2–1 2. Computing the tip credit 2–2, 2–5 3. Computing gross earnings 2–3 4. Computing regular earnings, overtime earnings, and total gross earnings 2–4 through 2–21 5. Computing salary—exempt employee 2–6 6. Reading time to determine hours worked 2–9, 2–10 2–11 (continental system) 7. 4/40 workweek 2–11 8. Converting monthly and annual salary to hourly rates 2–14, 2–15 rates Using the for 2–10 9. decimal system “docking” 2–18, 2–19 10. Piece-rate systems 2–20, 2–21 11. Commissions Solutions—Series A Problems 2–1A. (a) 37 hours × $4.20 = $155.40 (b) Yes. Beck, a full-time student in a university, may be employed by a retail establishment for at 85% of the minimum wage, or $6.17 (85% × $7.25 = $6.1625, which the government rounds to $6.17). Since Beck is being paid a rate less than $6.17, the wage rate violates the FLSA. (c) 37 hours × $6.17 = $228.29 2–2A. $2.13 × 40 = $85.20* (a) minimum weekly wages. (b) $ 85.20 minimum weekly wages 80.00 weekly wage regularly paid – $ 5.20 additional weekly wage due
The principles and practices of payroll accounting discussed in Chapter 2 are applied in the Practical Problems as shown below. Principle or Practice Practical Problem No. (A and B) 1. Paying less than the minimum wage (exception to the FLSA) 2–1 2. Computing the tip credit 2–2, 2–5 3. Computing gross earnings 2–3 4. Computing regular earnings, overtime earnings, and total gross earnings 2–4 through 2–21 5. Computing salary—exempt employee 2–6 6. Reading time to determine hours worked 2–9, 2–10 2–11 (continental system) 7. 4/40 workweek 2–11 8. Converting monthly and annual salary rates to hourly rates 2–14, 2–15 9. Using the decimal system for “docking” 2–10 10. Piece-rate systems 2–18, 2–19 11. Commissions 2–20, 2–21 Solutions—Series A Problems 2–1A. (a) 37 hours × $4.20 = $155.40 (b) Yes. Beck, a full-time student in a university, may be employed by a retail establishment for at 85% of the minimum wage, or $6.17 (85% × $7.25 = $6.1625, which the government rounds to $6.17). Since Beck is being paid a rate less than $6.17, the wage rate violates the FLSA. (c) 37 hours × $6.17 = $228.29 2–2A. (a) $2.13 × 40 = $85.20* minimum weekly wages. (b) $ 85.20 minimum weekly wages – 80.00 weekly wage regularly paid $ 5.20 additional weekly wage due
Solution-Manual-for-Payroll-Accounting-2011-21st-Edition-by-Bieg.docx