Question

part b payslips 30 marks

congratulations, you are the proud owner of the prancing pony (made famous by the lord of the rings franchise). you have many jobs to do as the owner, but one of the more important ones is to organise the pays of your employees.

your employees are paid in accordance with the following pay conditions:

• standard rate of pay is $16.00/hour.
• normal hours up to 8 hours per day monday to friday.
• overtime:
• mon - fri
• first three hours: paid at time and a half
• after three hours: paid at double time
• sat - sun
• first four hours: paid at time and a half
• after four hours: paid at double time
• tax @ 0.30 cents in the dollar of gross wage.
• medicare @ 2.1% of gross wage.
• union fees @ 0.8% of gross wage.

you give timesheets to two of your employees to fill out based on the hours that they worked. the timesheets have to filled out correctly so that you can process them.

name	mon	tues	wed	thurs	fri	sat	sun
tauriel (waitress)	1100 - 1800	1100 - 1800	day off	1200 - 2000	1200 - 2000	1000 - 1600	1200 - 1730

Explanation:

Calculate hours worked for Gandalf

Using the Overtime Pay Calculation knowledge point

• Monday: 1200 to 2000 is 8 hours.
• Standard: 8 hours.
• Overtime: 0 hours.
• Wednesday: 1100 to 2100 is 10 hours.
• Standard: 8 hours.
• Overtime (Time and a Half): 2 hours.
• Friday: 1400 to 0200 (next day) is 12 hours.
• Standard: 8 hours.
• Overtime (Time and a Half): 3 hours.
• Overtime (Double Time): 1 hour.
• Saturday: 1400 to 2400 is 10 hours.
• Overtime (Time and a Half): 4 hours.
• Overtime (Double Time): 6 hours.
• Sunday: 1800 to 2400 is 6 hours.
• Overtime (Time and a Half): 4 hours.
• Overtime (Double Time): 2 hours.

Calculate hours worked for Tauriel

Using the Overtime Pay Calculation knowledge point

• Monday: 1100 to 1800 is 7 hours.
• Standard: 7 hours.
• Tuesday: 1100 to 1800 is 7 hours.
• Standard: 7 hours.
• Thursday: 1200 to 2000 is 8 hours.
• Standard: 8 hours.
• Friday: 1200 to 2000 is 8 hours.
• Standard: 8 hours.
• Saturday: 1000 to 1600 is 6 hours.
• Overtime (Time and a Half): 4 hours.
• Overtime (Double Time): 2 hours.
• Sunday: 1200 to 1730 is 5.5 hours.
• Overtime (Time and a Half): 4 hours.
• Overtime (Double Time): 1.5 hours.

Summarize total hours by pay rate

Using the Overtime Pay Calculation knowledge point

• Gandalf:
• Standard Hours: \(8 + 8 + 8 = 24\) hours.
• Time and a Half Hours: \(2 + 3 + 4 + 4 = 13\) hours.
• Double Time Hours: \(1 + 6 + 2 = 9\) hours.
• Tauriel:
• Standard Hours: \(7 + 7 + 8 + 8 = 30\) hours.
• Time and a Half Hours: \(4 + 4 = 8\) hours.
• Double Time Hours: \(2 + 1.5 = 3.5\) hours.

Calculate gross wages

Using the Overtime Pay Calculation knowledge point

• Hourly Rates:
• Standard: \(\$16.00\)
• Time and a Half: \(\$16.00 \times 1.5 = \$24.00\)
• Double Time: \(\$16.00 \times 2 = \$32.00\)
• Gandalf's Gross Wage:

$$ \text{Gross} = (24 \times 16) + (13 \times 24) + (9 \times 32) = 384 + 312 + 288 = \$984.00 $$

• Tauriel's Gross Wage:

$$ \text{Gross} = (30 \times 16) + (8 \times 24) + (3.5 \times 32) = 480 + 192 + 112 = \$784.00 $$

Calculate deductions and net pay

Using the Overtime Pay Calculation knowledge point

• Deduction Rates:
• Tax: \(30\%\) (\(0.30\) cents in the dollar)
• Medicare: \(2.1\%\)
• Union Fees: \(0.8\%\)
• Total Deductions: \(30\% + 2.1\% + 0.8\% = 32.9\%\)
• Gandalf:
• Deductions: \(\$984.00 \times 0.329 = \$323.74\)
• Net Pay: \(\$984.00 - \$323.74 = \$660.26\)
• Tauriel:
• Deductions: \(\$784.00 \times 0.329 = \$257.94\)
• Net Pay: \(\$784.00 - \$257.94 = \$526.06\)

Answer:

Gandalf (Barman)

• Total Hours Worked: 46 hours
• Standard Hours: 24 hours
• Time and a Half Hours: 13 hours
• Double Time Hours: 9 hours
• Gross Wage: \(\$984.00\)
• Deductions:
• Tax (\(30\%\)): \(\$295.20\)
• Medicare (\(2.1\%\)): \(\$20.66\)
• Union Fees (\(0.8\%\)): \(\$7.87\)
• Total Deductions: \(\$323.74\)
• Net Pay: \(\$660.26\)

---

Tauriel (Waitress)

• Total Hours Worked: 41.5 hours
• Standard Hours: 30 hours
• Time and a Half Hours: 8 hours
• Double Time Hours: 3.5 hours
• Gross Wage: \(\$784.00\)
• Deductions:
• Tax (\(30\%\)): \(\$235.20\)
• Medicare (\(2.1\%\)): \(\$16.46\)
• Union Fees (\(0.8\%\)): \(\$6.27\)
• Total Deductions: \(\$257.94\)
• Net Pay: \(\$526.06\)