Final answer:
Bill's gross pay for regular and overtime hours is option 1: $488.80. After deductions for taxes and health insurance, his net pay is $383.86, which doesn't match any of the provided options.
Step-by-step explanation:
To calculate Bill's net pay for the week, we need to consider his regular wage, overtime pay, and all deductions. Bill's regular hours total to 38 hours at a pay rate of $10.40, and his overtime hours are at a time-and-a-half rate.
First, let's calculate the regular earnings:
- 38 hours × $10.40/hour = $395.20
The overtime pay is calculated as follows:
- 6 hours × $10.40/hour × 1.5 = $93.60
Therefore, the total gross pay before deductions is $395.20 (regular pay) + $93.60 (overtime pay) = $488.80.
Next, we calculate the deductions from Bill's gross pay:
- Federal Withholding Tax: $21.35
- Social Security Tax: 6.2% of $488.80 = $30.31
- Medicare Tax: 1.45% of $488.80 = $7.09
- State Income Tax: 3.07% of $488.80 = $15.01
- Voluntary Health Insurance Deduction: $31.18
Now, we sum up all the deductions:
- Total Deductions = $21.35 + $30.31 + $7.09 + $15.01 + $31.18 = $104.94
To find Bill's net pay, we subtract the total deductions from his gross pay:
- Net Pay = $488.80 - $104.94 = $383.86
After carefully calculating all the components of Bill's paycheck, it seems that none of the provided options matches the calculated net income of $383.86.