Question

2. Juan Pablo makes an hourly salary of $15 and time-and-a-half for any hours over 40. Last week he worked 45 hours. Explain how you would calculate his weekly gross pay, his Social Security Tax (6.2%), and his Medicare tax (145N). You don't need to actually calculate the values, just explain what mathematical processes you would use and why

Answer 1

Gross = $712.5

Social security = $44.175

Medicare = $10.33125

Explanation:

Given that :

Hourly pay = $15

Hours over 40 = 1.5 * $15 = $22.5

Total hours worked last week = 45

Total pay :

(40 * $15) + (45 - 5)*$22.5

$600 + $112.5

= $712.5

Hence, weekly gross pay = $712.5

Social security tax percent =(6.2%)

0.062 * gross = 0.062 * $712.5 = $44.175

Medicare tax percent = (1.45%)

0.0145 * $712.5 = $10.33125