satakenssignmentsessionLocatoassignment-take&inprogress-false; Calculator Calcul

ID: 2571217 • Letter: S

Question

satakenssignmentsessionLocatoassignment-take&inprogress-false; Calculator Calculate Payroll An employee earns $40 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week, and that the gross pay prior to the current week totaled $58,000. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $506. a. Determine the gross pay for the week If applicable, round your final answer to two decimal places. b. Determine the net pay for the week 211 A 00 iDD

Explanation / Answer

Note:

Both questions are separate and independent. So as per rule I am answering first question including its two parts (a) & (b).

(a). Gross pay for the week;

Total work done = 50 hours

Rate for first 40 hours = $40 per hour

Rate for overtime hours = $40 * 1. 5 = $60 per hour

Overtime hours (50 hours – 40 hours) = 10 hours

Thus gross pay for the week will be as follow;

40 hours * $40 = $1600

10 hours * $60 = $600

Thus total gross pay ($1600 + $600) = $2200

(b). Net pay for the week;

Net pay will be calculated as follow;

Gross pay

$2200

Less:

Social security tax @ 6%

$132

Medicare tax @1.5%

$33

Federal withholding

$506

($671)

Net pay for the week

$1529