Question

an employee recieves an hourly rate of $ 27 cumulative earnings for year prior ot curent wek, $99,700; social security axt rate, 60.% no maxmi um of $106,800; and medicare atx rate, 15.% no al earnings. what si hte gros pay for hte employce? a. $798.85 b. $873.77 c. $1,242.00 d. $1,323.00

Answer 1

The gross pay for the employee is $91,635.25.

Step-by-step explanation:

To calculate the gross pay for the employee, we need to subtract the deductions and taxes from the cumulative earnings. Let's start by finding the total deductions for Social Security and Medicare taxes:

Social Security tax = 6.2% of $106,800 = $6,619.60

Medicare tax = 1.45% of $99,700 = $1,445.15

Now, let's subtract the total deductions from the cumulative earnings:

$99,700 - $6,619.60 - $1,445.15 = $91,635.25

So, the gross pay for the employee is $91,635.25.