Question

Continuing Payroll Problem, 2B: Chapter 2

Olney Company, Inc. is a small manufacturing firm located in Allentown, Pennsylvania. The company has a workforce of both hourly and salaried employees. Each employee is paid for hours actually worked during each week, with the time worked being recorded in quarter-hour increments. The standard workweek consists of 40 hours, with all employees being paid time and one-half for any hours worked beyond the 40 regular hours.

Wages are paid every Friday, with one week’s pay being held back by the company. Thus, the first payday for Olney Company is January 14 for the workweek ending January 8 (Saturday).

The Payroll Register for the pay period ending January 8, 20-- will be completed by you. Ms. Carmen V. Ruppert prepares the time clerk's report for each pay period, which is provided on the Time Clerk's Report page. Also, the Hourly Wage / Salary Report is provided.

Requirements:

Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference.

Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. For only hourly employees that worked overtime, complete the Overtime Earnings columns (Rate per Hour and Amount).
For salaried workers, complete the Regular Earnings column and show the hourly overtime rate and earnings only if overtime was worked.

Record the Total Earnings for each employee by adding the Regular Earnings and the Overtime Earnings.

Hourly Wage / Salary Report

The Hourly Wage / Salary Report is provided below which lists each employee, their assigned time card number and their individual hourly rate or salary.

Time Card No.	Employee Name	Hourly Wage or Salary
11	Rob. A. Mangino	$18.50		per hour
12	Inga C. Flores	19.25		per hour
13	Carson S. Palmetto	17.80		per hour
21	Randy F. Waters	20.70		per hour
22	Cathy T. Kroll	23.80		per hour
31	Carmen V. Ruppert	800		per week
32	William M. Scott	780		per week
33	Sarah A. Wickman	3,500		per month
51	Lucas T. Foley	4,500		per month
99	Marshal W. Olney	78,000		per year

Time Clerk's Report

Ms. Carmen V. Ruppert prepares the time clerk's report for each pay period. Her report for the first week of operations is given below.

Note: All employees, except for Marshal Olney, are paid for hours worked beyond 40 at one and one-half times their regular hourly rate of pay.

TIME CLERK'S REPORT NO. 1 For Period Ending January 8, 20-- Employee Time Record Time Worked* Time Lost M T W T F S 11 Rob A. Mangino 8 8 8 8 8 – 40 12 Ingo C. Flores 8 8 8 8 10 8 50 13 Carson S. Palmetto 8 5½ 8 8 9 – 38½ 1½ hrs. tardy 21 Randy R. Waters 10 10 8 8 11 – 47 22 Cathy T. Kroll 8 8 8 8 8 – 40 31 Carmen V. Ruppert 8 8 8 8 8 1¼ 41¼ 32 William M. Scott 8 8 8 8 8 – 40 33 Sarah A. Wickman 8 8 8 8 8 – 40 51 Lucas T. Foley 8 8 8 8 9 4 45 99 Marshal W. Olney 8 8 8 8 8 – 40

Payroll Register

This is the first task to completing Olney Company's payroll register. Complete the steps outlined below:

Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference.

Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. For only hourly employees that worked overtime, complete the Overtime Earnings columns (Rate per Hour and Amount).
For salaried workers, complete the Regular Earnings column and show the hourly overtime rate and earnings only if overtime was worked.

Record the Total Earnings for each employee by adding the Regular Earnings and the Overtime Earnings.

If an amount box does not require an entry, leave it blank or enter "0". If required, round your intermediate calculations to the nearest cent and use the rounded amounts in subsequent computations. Round fraction values to the nearest two decimal places, e.g. 1 1/2 to 1.50.

OLNEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20 --
				Regular Earnings			Overtime Earnings
Time Card No.	Name	Marital Status	No.W/H Allow.	Hours Worked	Rate per Hour	Amount	Hours Worked	Rate per Hour	Amount	Total Earnings
11	Mangino, R.	S	1		$	$		$	$	$
12	Flores, I.	S	0
13	Palmetto, C.	M	2
21	Waters, R.	M	3
22	Kroll, C.	S	2
31	Ruppert, C.	M	3		………
32	Scott, W.	M	4		………
33	Wickman, S.	S	1		………
51	Foley, L.	M	5		………
99	Olney, M.	M	7		………
Totals						$	………	………	$	$

Answer 1

				Regular	earn	ings	overtime	earn	ings
Time card no.	Name	marital status	no. W/h allow	Hours worked	rate per hour	amount	hours worked	rate per hour	amount	total amount
11	mangino, r	s	1	40	18.5	740	0	0	0	740
12	flores	s	0	40	19.25	770	10	28.88	288.8	1058.8
13	palmetto, c	m	2	38.5	17.8	685.3	0	0	0	685.3
21	waters,r	m	3	40	20.70	828	7	31.05	217.35	1045.35
22	kroll, c	s	2	40	23.80	952	0	0	0	952
31	Ruppert, c	m	3	40	20	800	1.25	30	37.5	837.5
32	Scott, w	m	4	40	19.5	780	0	0	0	780
33	wickman, s	s	1	40	21.88	875.2	0	0	0	875.2
51	foley, l	m	5	40	28.125	1125	5	42.19	210.95	1335.95
99	Olney, m	m	7	40	37.5	1500	0	0	0	1500

Overtime is calculated as :-

Flores, I .19.25x1.5=28.875=28.88

Waters, r 20.70x1.5=31.05

Ruppert, c 20x1.5=30

Foley, l. 28.125x1.5=42.1875=42.19