Question

An employee earns $16 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. assume that the employee worked 50 hours during the week, and that the gross pay prior to the current week totaled $23,200. assume further that the social security tax rate was 6.0%, the medicare tax rate was 1.5%, and federal income tax to be withheld was $212.

Answer 1

Regular pay: $16 per hr x 40 hrs = $640

Overtime rate: $16 x 1.75% = $28

Overtime pay: $28 x 10 hrs = $280

Gross pay: $640 + $280 = $920

Medicare: $920 x 1.5% = 13.8

Social Security: $920 x 6.0% = 55.2

*Add Medicare, Social Security and the withheld tax

13.8 + 55.2 + 212 = $281

Net pay: $920 - $281 = $639

Answer 2

Total pay for this week = $16*40 + $16*1.75*10 = $920

Prior Gross pay = 23,200

Total Gross pay = 920 +23,200 = $24,120

Social security = 0.06*24,120 = $1,447.20

Medicare = 0.015*24,120 = $361.80

Federal Tax withheld = $212

Total deductions = 1447.20 +361.80+212 = 2,021

Total Net Pay = 24,120 -2,021 =$22,099