Question

Thomas Martin receives an hourly wage rate of $40, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $350; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the gross pay for Martin?

Answer 1

Thomas Martin would receive per week regular pay of ($40 x 40 hours) $1600 and overtime pay of $60 x 8 ($40 x 1.5=$60/hr)   $480 for a total of $2080. So gross pay would then be $2080. The deductions if taken off this would then give us his net pay.