Question

Barbara Strand's regular hourly wage rate is $10, and she receives an hourly rate of $15 for workin excess of 40 hours. During a January pay period, Barbara works 49 hours. Barbara's federal income tax withholding is $94, and she has no voluntary deductions. Compute Barbara Strand's gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65\%. (Round answers to 2 decimal places, eg. 15.25.) Barbara Strand's gross earnings $ Barbara Strand's net pay

Answer 1

Barbara Strand's gross earnings for the pay period are $535. After deductions for federal income tax and FICA, her net pay is $400.07.

Step-by-step explanation:

To calculate Barbara Strand's gross earnings for the pay period, we need to consider her regular wage and overtime work. Barbara's regular work consists of 40 hours at her regular wage rate, and overtime work is the additional 9 hours at her overtime rate.

Regular earnings = 40 hours * $10/hour = $400
Overtime earnings = 9 hours * $15/hour = $135
Gross earnings = Regular earnings + Overtime earnings = $400 + $135 = $535

The net pay is calculated by subtracting federal income tax and FICA tax from the gross earnings.

FICA tax = Gross earnings * 7.65% = $535 * 0.0765 = $40.93 (rounded to two decimal places)
Federal income tax withholding = $94
Total taxes = FICA tax + Federal income tax = $40.93 + $94 = $134.93

Net pay = Gross earnings - Total taxes = $535 - $134.93 = $400.07 (rounded to two decimal places)