An employee receives an hourly rate of $19.00, with time and a half for all hour
ID: 2566750 • Letter: A
Question
An employee receives an hourly rate of $19.00, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the first week of the calendar year are as follows: hours worked, 45.00 federal income tax withheld, $145.00; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the net amount to be paid the employee? If required, round your answers to the nearest cent.
Select the correct answer.
A $902.50
B $1,282.50
C $642.31
D $689.81
Explanation / Answer
Gross Wage =[45*19]normal wages +[(45-40)*9.5] overtime wages
= 855+ 47.5
= 902.5
**overtime rate=19*1/2= 9.5
2)Taxes withheld:
Federal income tax :145
Medicare and social security tax[902.5*.06]+[902.5*.015]
=54.15+ 13.54= 67.69
total taxes witheld = 145+67.69= 212.69
net pay= gross pay-taxes witheld'
= 902.5-212.69
= 689.81
correct option is"D"
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