Question

Sadie White receives an hourly rate of $30, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 45; federal income tax withheld, $295; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to White?

Answer 1

Sadie White's net pay for the week is $1020.12.

Step-by-step explanation:

To calculate Sadie White's net pay, we need to consider her regular pay for 40 hours and her overtime pay for the additional 5 hours. For 40 hours, her regular pay is $30 per hour, so it would be

40 x 30 = $1200.

For the 5 hours of overtime, her pay will be time and a half, which means

$30 x 1.5 = $45 per hour.

Therefore, her overtime pay for 5 hours would be

5 x 45 = $225.

In total, her gross pay would be

1200 + 225 = $1425.

Now, let's calculate the deductions. Social Security tax is 6.2% of the gross pay, so it would be

0.062 x 1425 = $88.50.

Medicare tax is 1.5% of the gross pay, so it would be

0.015 x 1425 = $21.38.

Finally, to find the net amount to be paid, we subtract the federal income tax withheld, which is $295, from the gross pay and then subtract the total deductions:

Net amount = Gross pay - Federal income tax - Social Security tax - Medicare tax

= 1425 - 295 - 88.50 - 21.38

= $1020.12