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Carmen Gaetano worked 46 hours during this payweek. He is paid time-and-a-half for hours over 40 and his pay rate is $17.90/hour. What was his overtime premium pay for this workweek?

a. $161.10
b. $50.70
c. $53.70
d. $107.40
e. $26.85

1 Answer

5 votes

Answer:

The overtime premium pay is $53.7. Thus, answer c is the correct option.

Step-by-step explanation:

The overtime premium is the additional amount over basic pay rate that is given to employees for working over normal working hours. This is not the same as overtime pay because over time pay is calculated by taking the whole overtime pay rate multiplied by overtime hours. While overtime premium is the additional amount over basic pay rate that is paid in overtime.

The overtime premium pay for Carjmen Gaetano is:

Over time pay rate = 17.9 * 1.5 = $26.85

The over time premium pay per hour is = 26.85 - 17.9 = $8.95 per overtime hour

The number of overtime hours = 46 - 40 = 6 hours

Thus, overtime premium pay = 6 * 8.95 = $53.7

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