Question

Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Jeremy is single with two withholding allowances. He receives an annual salary of $36,000 and receives a 3 percent commission on all sales. During the semimonthly pay period ending September 29, 20XX, Jeremy sold $20,000 of service contracts.
Required:
Complete the payroll register for the September 29 pay period.

Answer 1

Answer:

Pay recorded for September 29 is $2,100

Explanation:

Jeremy Ortiz is paid based on two sources of income. The first being the annual salary of $36,000 and the second is the commission on all the service contracts sold, which is 3%.

Since the pay period is of semimonthly (15 days), the annual salary would be divided by 24 instead of the regular 12 months. This would mean that salary of $1,500 ($36,000 / 24) would be recorded in the payroll register.

For the commission, the sales done during this semimonthly period was $20,000 of service contracts. The commission at 3% of all sales would be $600 ($20,000 x 3%).

Total pay recorded in the payroll register for the September 29 period would be $2,100 ($1,500 + $600).