Question

Lenny Florita, an unmarried employee, works 47 hours in the week ended January 12. His pay rate is $12 per hour, and his wages have deductions for FICA Social Security, FICA Medicare, and federal income taxes. He claims four withholding allowances. Compute his regular pay, overtime pay (Lenny earns $18 per hour for each hour over 40 per week), and gross pay. Then compute his FICA tax deduction (6.2% for the Social Security portion and 1.45% for the Medicare portion), Income tax deduction (use the wage bracket withholding table from Exhibit 9A.6), total deductions, and net pay. (Round your intermediate calculations and final answers to 2 decimal places.) Hourly Rate Hours Regular pay Overtime pay Gross pay FICA-Social Security tax deduction FICA-Medicare tax deduction Income tax deduction Total deductions Nel pay

Answer 1

		Lenny Florita
		Hours	Hourly rate
	Regular Pay	40	$    12.00	$ 480.00
	Overtime Pay	8	$    18.00	$ 144.00
	Gross Pay			$ 624.00
*	FICA-Social Security		$    38.69
**	FICA-Medicare Tax		$       9.05
***	Income Tax		$    42.00
	Total deductions			$    89.74
	Net Pay($624-$89.74)			$ 534.26
*	($624*6.2%)
**	($624*1.45%)
***	(Wage between (620-630) and four withholding allowance claimed Income tax withheld is $42(As per below table)
			Withholding allowance Claimed
			0	1	2	3	4
	At least	But less than
	600	610	76	67	58	49	39
	610	620	79	69	59	50	41
	620	630	81	70	61	52	42