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3 votes
1. Hannah earns $18/hr. She claims one withholding allowance on her taxes and is

paid weekly. She pays $75 per week for her health insurance premium and
contributes 10% of her pay to a 401(k) retirement plan. Her time card is shown
below. She earns overtime pay for weekend hours. Review the information and then
answer the questions that follow.
Date
Day
Regular Hours
10-05
10-06
10-07
10-08
10-09
10-10
10-11
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
a. Calculate Hannah's gross pay. Show your work. (3 points)
8
8
00
8
8
8
Overtime Hours
s
3
b. Create a pay stub to represent Hannah's gross pay, withholdings and deductions,
and net pay. Use the following template. (5 points)

1. Hannah earns $18/hr. She claims one withholding allowance on her taxes and is paid-example-1

1 Answer

2 votes

Answer is:

Hannah's net pay is $466.31.

Step-by-step

To calculate Hannah's gross pay, we need to determine her total regular hours and overtime hours worked during the week. Regular hours are hours worked up to 40 hours in a week, and any hours worked over 40 hours are considered overtime hours.

Regular Hours = 8 + 8 + 8 + 8 + 8 + 0 + 0 = 40 hours

Overtime Hours = 3 hours

Hannah's hourly rate is $18/hr, and her gross pay is calculated as follows:

Gross Pay = (Regular Hours x Hourly Rate) + (Overtime Hours x Hourly Rate x 1.5)

Gross Pay = (40 x $18) + (3 x $18 x 1.5)

Gross Pay = $720 + $81

Gross Pay = $801

Now, let's create a pay stub to represent Hannah's gross pay, withholdings and deductions, and net pay.

Pay Stub for Hannah

Pay Period: Week of 10/05/2023

Employee Information:

Name: Hannah

Employee ID: XXXXX

Pay Rate: $18/hr

Withholding Allowances: 1

Earnings:

Regular Hours: 40 hours

Overtime Hours: 3 hours

Gross Pay: $801.00

Deductions:

Federal Withholding Tax: $118.28

Social Security Tax: $49.68

Medicare Tax: $11.63

Health Insurance Premium: $75.00

401(k) Contribution: $80.10

Net Pay: $466.31

The above pay stub shows Hannah's gross pay of $801.00, along with her deductions for federal withholding tax, social security tax, Medicare tax, health insurance premium, and 401(k) contribution. After these deductions, Hannah's net pay is $466.31.

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