The name of the employees of Cox security systems and theirregular salaries are
ID: 2447676 • Letter: T
Question
The name of the employees of Cox security systems and theirregular salaries are shown in the following payroll registery. Notethat hall and short are paid monthly on the last payday, while allothers are paid weekly.
In addition to the regular salaries, the company pays an annualbonus based on the amount of earnings for the year. For the currentyear, the bonus amounts to 8% of the annual salary paid to eachemployee. The bonus is to be paid along with the regular salarieson December 24, but the amount of the bonus and the amount of theregular salary will be shown separately on each employee’searnings statement. Assume that all employees received theirregular salary during the entire year.
Prepare the payroll for the pay period ending December 24,showing the following for each employee:
· Use thewage-bracket method to withhold federal income tax from the regularsalaries.
· Withhold aflat 25% on the annual bonus.
· Totalsalaries and bonuses are subject to a 2% state income tax and a 1%city income tax.