Question

Lenny Florita, an unmarried employee, works 44 hours in the week ended January 12. His pay rate is $14 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 $21.00 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 11A.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 0.00 FICA-Social Security tax deduction FICA-Medicare tax deduction Income tax deduction Total deductions 0.00 Net pay

Answer 1

	Hours	Hourly rate
Regular pay	40	14.00		560.00
Overtime pay	4	21.00		84.00
Gross pay				644.00
FICA-Social Security tax deduction			39.93		=644*6.2%
FICA-Medicare tax deduction			9.34		=644*1.45%
Income tax deduction			45.00
Total deductions				94.27
Net pay				549.73
The income tax deduction for wages between 640 and 650 with 4 withholding allowances is $45