Payroll Case Study

CASE STUDY
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Using the information in the fact sheet, please answer the below questions.

1. A FT-salaried employee paid semi-monthly starts on 9/7/12. For how many hours should the employee be paid on the 9/15/12 payroll?

The pay date actually gets pushed up to 9/14/12 since 9/15/13 falls on a Saturday. Since this is a semi-monthly payroll consisting of 86.67 hours per period. Assuming that all the employee’s paperwork was complete on the first day of employment 9/7/13 such that it met the input cutoff, then this employee would be paid for 6 days, which is a total of 52 hours. (86.67*60%).

2. A PT-salaried employee paid semi-monthly has a termination date of 9/19/12. For how many hours should the employee be paid on the 9/30/2012 payroll?
The employee would be paid for (3 days of work), which is (3*6) 18 hours. The employee may also be paid for any remaining vacation days based on policy.

3. A PT-salaried employee has a start date of 9/21/12. The employee is paid semi-monthly with an annual salary of $40,000. What should the employee’s wages be on the 9/30/12 payroll?
The PT-salaried employee would be paid for $999.96 on the 9/30/12 pay date.
(40,000/1560=$25.64*(65*60%=39) =$999.96
6*260=1,560

4. A FT-salaried employee has a termination date of 9/26/12. The employee is paid semi-monthly with an annual salary of $52,000. What should the employee’s wages be on the 9/30/12 payroll?
(52,000/2080=$25, 86.67*80%=69.33hrs, $25*69.33=$1,733.33)

5. A FT-salaried employee making $60,000 per year receives a salary increase of $5,000 retroactive to 1/1/2012. The employee is paid on a semi-monthly basis.

a. If the change is made on the 9/15 payroll, what is the employee’s new semi-monthly salary? $2,708.33 (65,000/24)

b. What are the employee’s retro wages on the 9/15 payroll? $3,333.28

Calculations:
16 missed pay periods (at