Create a formula in cell H5 to calculate the taxable pay. Multiply the number of dependents by the deduction per dependent and subtract that from the gross pay.

As manager of the gift shop at the Metropolitan Zoo, you are responsible for managing the weekly payroll. Your assistant developed a partial worksheet, but you need to enter the formulas to calculate the regular pay, overtime pay, gross pay, taxable pay, withholding tax, FICA, and net pay. In addition, you want to include total pay columns and calculate some basic statistics. As you construct formulas, make sure you use absolute and relative cell references correctly in formulas.

Steps to Perform:
Step Instructions Points Possible
1 Start Excel. Download and open the file named Exp19_Excel_Ch02_ML1_Payroll.xlsx. Grader has automatically added your last name to the beginning of the filename. 0
2 Use IF functions to calculate the regular pay and overtime pay based on a regular 40-hour workweek in cells E5 and F5. Pay overtime only for overtime hours. In cell G5, calculate the gross pay based on the regular and overtime pay. Abram’s regular pay is $398. With 8 overtime hours, Abram’s overtime pay is $119.40. 20
3 Create a formula in cell H5 to calculate the taxable pay. Multiply the number of dependents by the deduction per dependent and subtract that from the gross pay. With two dependents, Abram’s taxable pay is $417.40. 10
4 Use a VLOOKUP function in cell I5 to identify and calculate the federal withholding tax. Use the tax rates from the range D21:E25. The VLOOKUP function returns the applicable tax rate, which you must then multiply by the taxable pay. 20
5 Calculate FICA in cell J5 based on gross pay and the FICA rate , and calculate the net pay in cell K5. Copy all formulas down their respective columns to row 16. 10