Pension and gross earning

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,

wafaanasr
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Mar 3rd, 2008
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dbmalipatil
Profile Answers by dbmalipatil

Mar 30th, 2008

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.