Question

Sunland Corbin's regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a

January pay period, Sunland works 45 hours. Sunland's federal income tax withholding is $98, and she has no voluntary deductions.
The 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax
rate of 1.45% on all salaries and wages.
Compute Sunland Corbin's gross earnings and net pay for the pay period. (Round Intermediate calculation and final answers to 2 decimal
places, e.g. 15.25.)
Gross earnings
Net pay
$

Answer 1

Sunland Corbin's gross earnings for the pay period is $760, and her net pay is $603.88.

Step-by-step explanation:

To calculate Sunland Corbin's gross earnings, we need to calculate her regular wages for 40 hours and her overtime wages for the remaining 5 hours.

The regular wages can be calculated by multiplying her regular hourly rate of $16 by 40 hours: $16/hour * 40 hours = $640.

The overtime wages can be calculated by multiplying her overtime hourly rate of $24 by 5 hours: $24/hour * 5 hours = $120.

Therefore, Sunland's gross earnings for the pay period would be $640 + $120 = $760.

To calculate her net pay, we need to subtract the federal income tax withholding and the FICA taxes from her gross earnings. The FICA taxes consist of the Social Security tax and the Medicare tax.

The Social Security tax can be calculated by multiplying the gross earnings by the Social Security tax rate of 6.2%: $760 * 6.2% = $47.12.

The Medicare tax can be calculated by multiplying the gross earnings by the Medicare tax rate of 1.45%: $760 * 1.45% = $11.

Therefore, Sunland's total FICA taxes would be $47.12 + $11 = $58.12.

To calculate her net pay, we need to subtract the federal income tax withholding and the total FICA taxes from her gross earnings: $760 - $98 - $58.12 = $603.88.

Therefore, Sunland's net pay for the pay period is $603.88.