Question

vyroll deductions include withheld income tax of 20%. FICA tax Sullivan manages a Frosty World Orive-in. His straight-time parts $13 per hour, with time and a half da weekly deduction of $7 for a charitable contribution to United Way. Sullivan word 56 hours during the we Click the icon to view payroll we normation) made movements Sraight time pay for 40 hours 5 520.00 Overtime pay for 15 hours Gross Pay Compute Sullivan's net pay for the week. (Round all amounts to the nearest cent Gross pay Withholding deductions Employee income tax Employee OASIS

Answer 1

Compute Sullivan's net pay for the week:

Gross pay		$832
Withholding deductions:
Employee income tax	$166.4
Employee OASDI tax	$ 51.58
Employee Medicare tax	$ 12.06
Employee contribution to United Way	$ 7.00
Total withholdings		($237.04)
Net (take home) pay		$594.96

1) Employee Income Tax:

=$832 × 20%

= $ 166.4

2) OASDI Tax:

= $832 × 6.2%

= $ 51.58

3) Medicare Tax:

=$ 832 × 1.45%

=$ 12.06