SHEGER COLLEGE

Level-III Process Payroll (Group Assignment)

BALEMA Trading is one of a merchandising firm established for the purchase and sale of goods
in ADAMA town. The following data shows a sample of employees of the firm and their
earnings for the month of October 2015.

Employee Name of employees Basic Overtime Duration of Overtime

ID salary worked hours work
01 KENENI LEMI 6500 10 6:00PM-10:00AM
02 SAMUEL BEKELE 4400 10 10:00AM-12:00PM
03 ADMASU LETA 2800 4 Weekend
04 ABERA MEKESHA 850 - -

Additional Information:

1. All employees are permanent

2. Samuel is a member of saving & credit association of the firm & saves 10% of his
basic salary.
3. Each employee is entitled for desert allowance of 20% of his/her basic salary.
4. The firm expects every employee to work 166 hours per month.
5. Pension contribution rate:
 From employer 11%
 From employee 7%
6. Overtime payment rate is as follows
 Normal hours (from 6:00am -10:00pm) 1.25 Times Ordinary hourly rate.
 Night (from 10:00pm to 6:00am) 1.50 Times Ordinary Hourly rate.
 Weekends 2.00 Times Ordinary Hourly Rate.
 Holidays 2.50 Times Ordinary Hourly Rate

Required Tasks:

Task 1: Prepare payroll register for the month of October, 2015.

Task2: Record the necessary journal entries for payment of salary for the month
of October, 2015.
Task3. What is the accounting period for the payment of withholding
employment income tax of the month October, 2015?

Note: Group member should be not more than Five(5)!