Question

Mary 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, Mary works 45 hours. Mary’s federal income tax withholding is $85, and she has no voluntary deductions. Compute Mary Strand’s gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65%. (Round answers to 2 decimal places, e.g. 15.25.)

Answer 1

Mary Strand's gross earnings for the pay period are $665, and after accounting for FICA and federal income tax withholdings, her net pay is $529.13.

Step-by-step explanation:

To compute Mary Strand's gross earnings for a January pay period where she works 45 hours, we need to consider her regular hourly wage and overtime pay. Mary's regular earnings for 40 hours at $14 per hour is $560 (40 hours * $14/hour). Her overtime earnings for the additional 5 hours at $21 per hour is $105 (5 hours * $21/hour). Therefore, her total gross earnings would be $665 ($560 + $105).

The net pay is calculated by subtracting Mary's taxes and other deductions from her gross earnings. First, we calculate the FICA tax, which is 7.65% of her gross earnings: $665 * 7.65% = $50.87 (rounded to two decimal places). Her federal income tax withholding is $85. Therefore, her total deductions are $135.87 ($85 + $50.87). Subtracting this from her gross earnings gives us her net pay: $665 - $135.87 = $529.13.

So, Mary Strand's gross earnings for the pay period are $665, and her net pay is $529.13 (rounded to two decimal places).

Answer 2

Mary Strand’s gross earnings and net pay for the pay period is as following

Explanation:

C worked 48 hours, and anything over 40 hours is overtime. So C worked 40 regular hours and 8 overtime hours.

40 into $14.00 = $560.00

8 plus $21 = $168.00

Therefore C's gross pay was 560.00 plus 168.00 = 728.00

Let's assume that the FICA tax also included the Social Security tax. So, her FICA tax is 0.0765 into 728.00 = 55.692

Hence,

Gross pay minus Fed. Income Tax minus FICA = Net pay

$728.00 minus $97.00 minus $55.692 = $575.308