Reference no: EM133006794

Question - Ahmed's regular hourly wage is $20 an hour. He receives overtime pay at the rate of time and a half. Ahmed is paid every two weeks at a standard of 40 hours per week. For the first pay period in January, Ahmed worked 90 hours over the first two weeks. Ahmed's income tax withholding is 20% and his pension contribution is $100. Ahmed has authorized that $120 savings be withheld from his check each pay period for savings bonds.

Required -

1. Compute Ahmed's gross earnings and net pay for the pay period showing each payroll deduction in arriving at net pay.

2. Record all necessary transactions related to the liabilities and payments.