Question

Beth corbin's regular hourly wage are is $16,and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period,Beth works 45 hours. Beth's federal income tax withholding is $95, she has no voluntary deductions, and the FICA tax rate is 7.65%. Compute Beth corbi's gross earnings and net pay for the pay period

Answer 1

$760 gross

$614.13 is net

Explanation:

Beth earns $16 x 40 for the first 40 hours she works.

Then she earns overtime--> 5 hours at $24 per hour

Her "gross" earnings are before any deductions or taxes.

So 16x40 = 640 and 5x24= 120 so her January gross earnings are 640+120=

$760 gross

Her "net" pay is what is left over after taxes.

So take the $760 and subtract the $95 withholding = $665

Taxes are 7.65% so multiply 665 x 0.0765 = 50.8725 and subtract that also.

614.1275 rounded to $614.13 is net.