An employee receives an hourly wage rate of $23, with time and a half for all ho

Question

An employee receives an hourly wage rate of $23, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $131; cumulative earnings for the year prior to this week, $24,598; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; and federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? Round your answer to the nearest cent.

a.$911.47

b.$1,127.00

c.$842.48

d.$1,587.00

Explanation / Answer

Gross Pay 1127 =(40*23)+(6*23*1.5) Less: Deductions federal income tax 131 Social security tax 67.62 =1127*6% Medicare tax 16.91 215.53 =1127*1.5% Net pay 911.47 Option A is correct

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