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 current week are as follows: hours worked,46; federal income tax withheld,$110; cumulative earnings for the year prior to this week,$24,500; Social security tax rate,6%; and Medicare tax rate,1.5%; state unemployment compensation tax,3.4% on the first $7,000; federal unemployment compensation tax,0.8% on the first $7,000.What is the net amount to be paid to the employee?
A)$569.87
B)$539.00
C)$625.00
D)$544.88

Question

Quizplus · Accepted Answer

Explanation:Gross earnings: 46 hours x $15 per hour = $690Overtime earnings: 6 hours x $15 per hour x 1.5 = $135Total earnings: $690 + $135 = $825Federal income tax withheld: $110Social security tax: $825 x 6% = $49.50Medicare tax: $825 x 1.5% = $12.38State unemployment compensation tax: $7,000 x 3.4% = $238Federal unemployment compensation tax: $7,000 x 0.8% = $56Total deductions: $110 + $49.50 + $12.38 + $238 + $56 = $465.88Net amount to be paid to the employee: $825 - $465.88 = $569.87

An Employee Receives an Hourly Rate of $15,with Time and a Half