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Question: Pension and gross earning
Answer: Question # 1
ABC Company sponsors a contributory pension plan for which the company contributes 3% of salaries for exempt employees, and the employees have contributed a total $245,000.00 . If hourly employees have earned a total of $380,000.00, and salaried employees have earned a total of $420,000.00 this year,
what is the pension expense for the year?
A. $7,350.00 B. $11,400.00 C. $12,600.00 D. $ 19,950.00 E. $ 24,000.00
Question # 2
Devon is hired at a salary of $78,000.00 annually and begins work on Wednesday July 7th . If payroll is processed semi- monthly for periods ending on the 15th and the final day of the month, What are Devon's gross earnings for the pay period ending July 15th .?
A.$ 1,400.00 B.$ 1,500.00 C.$1,600.00 D.$1,800.00 E.$3,000.00
Thank You,
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| March 03, 2008 03:00:43 |
#1 |
| dbmalipatil |
Member Since: March 2008 Total Comments: 6 |
RE: Pension and gross earning
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Q2: Devon is hired at a salary of $78,000.00 annually and begins work on Wednesday July 7th . If payroll is processed semi- monthly for periods ending on the 15th and the final day of the month, What are Devon's gross earnings for the pay period ending July 15th .?
Ans: Considering the assumption that the hours per Year = 2080 and Hours per week is 8 hours.
Hourly rate of Employee = 78000/2080 = 37.5
Employee is Semimonthly, hence his pay period Salary would be = 37.5 * 86.67 = 3250.125
Semimonthly Hours = 2080 / 24 = 86.67
For the Pay period ending July 15, Employee has worked for 9 days = 9 * 8 = 72 Hours
His/Her Pay would be = Hours Worked * Hourly Rate = 72 * 37.5 = 2700
The Answer is $7200. |
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