Sadie White receives an hourly rate of $30,with time and a half for all hours worked in excess of 40 during a week.Payroll data for the current week are as follows: hours worked,48; federal income tax withheld,$300; social security tax rate,6.0%; and Medicare tax rate,1.5%.What is the net amount to be paid to White?
A)$1,443.00
B)$1,143.00
C)$1,260.00
D)$1,000.00

Question

Quizplus · Accepted Answer

Sadie's regular pay for 40 hours is $30 x 40 = $1,200. For 8 overtime hours, she earns $30 x 1.5 x 8 = $360. Total earnings are $1,200 + $360 = $1,560. Social security tax is 6% of $1,560 = $93.60, and Medicare tax is 1.5% of $1,560 = $23.40. Total deductions are $300 (federal tax) + $93.60 (social security) + $23.40 (Medicare) = $417. Net pay is $1,560 - $417 = $1,143.

Sadie White Receives an Hourly Rate of $30,with Time and a Half