Question

Debra Strand’s regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period, Debra works 48 hours. Debra’s federal income tax withholding is $89, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%

Answer 1

Debra's net pay for the January pay period is approximately $583.26.

Regular hours (capped at 40): 40 hours

Overtime hours (48 hours total - 40 regular hours): 8 hours

Now we will calculate her regular pay and overtime pay:

Regular pay: 40 hours * $14/hour = $560

Overtime pay: 8 hours * $21/hour = $168

Debra's gross pay is the sum of her regular pay and overtime pay:

Gross pay: $560 (regular pay) + $168 (overtime pay) = $728

Next, let's calculate Debra's FICA tax, which is at a rate of 7.65%:

FICA tax: $728 (gross pay) * 0.0765 = $55.74

Now, we can calculate Debra's net pay by subtracting her federal income tax withholding and FICA tax from her gross pay:

Net pay: $728 (gross pay) - $89 (federal income tax withholding) - $55.74 (FICA tax) ≈ $583.26