An employee receives an hourly rate of $15, 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, 46; federal income tax withheld, $110, Social security tax rate,6%; and Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the fast $7,000; federal unemployment tax, 0.81% on the first $7,000. What is the net amount to be paid to the employee if required, round your answers to the nearest cent
a. $625.00 b. $544.88 c. $539.00 d. $569.88
Ans:$569.88 is Correct Answer
Explanation:
Gross earnings = $15 * 40 + $15 * 1.5 * 6 = $735
Federal income tax = $110
Social security tax = 6% * $735 = $44.10
Medicare tax = 1.5% * $735 = $11.02
Net pay = $735 - $110 - $44.10 - $11.02 = $569.88
State & federal unemployment compensation tax deductions can be ignored as the cumulative earnings have already exceeded $7,000.
An employee receives an hourly rate of $15, with time and a half for all hours...