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 first $7,000; federal unemployment tax, 0.8% 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) $569.87
B) $539.00
C) $625.00
D) $544.88

Question

Quizplus · Accepted Answer

Gross pay = Earnings at regular rate + Earnings at overtime rate = [($15 × 40 hours) + ($15 × 1.5 × 6 hours)] = $735
Net pay = Gross pay - (Federal income tax + Social security tax + Medicare tax) = $735 - [$110 + ($735 × 6.0%) + ($735 × 1.5%)] = $569.875

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