During the first week of January,an employee works 46 hours.For this company,workers earn 150% of their regular rate for hours in excess of 40 per week.Her pay rate is $16 per hour,and her wages are subject to no deductions other than FICA Social Security,FICA Medicare,and federal income taxes.The tax rate for Social Security is 6.2% of the first $127,200 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings.The current FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.The employee has $80 in federal income taxes withheld.What is the amount of this employee's gross pay for the first week of January?
A)$736
B)$784
C)$1,104
D)$1,156
E)$1,004

Question

Quizplus · Accepted Answer

The employee's gross pay is calculated as follows: 40 hours at her regular rate of $16 per hour equals $640. For the 6 hours of overtime, she earns 150% of her regular rate, which is $24 per hour (1.5 x $16). Thus, for 6 hours, she earns $144 (6 x $24). Her total gross pay for the week is $640 + $144 = $784.

During the First Week of January,an Employee Works 46 Hours