An employee earns $25 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 48 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $239.15.a. Determine the gross pay for the week.b. Determine the net pay for the week.

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Asked Dec 17, 2019
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An employee earns $25 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 48 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $239.15.
a. Determine the gross pay for the week.
b. Determine the net pay for the week.

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Expert Answer

Step 1

Requirement a:

Calculate the gross pay for the week.

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Particulars Amounts Regular pay (1) $1,000 Overtime pay (2) $400 Gross pay $1,400

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Step 2
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Working notes: Calculate regular pay. Regular pay = 40 hours x $25 per hour (1) = $1,000 Calculate overtime pay. Overtime pay = (48 hours – 40 hours) x ($25 × 2) = 8 hoursx $50 per hour = $400 (2)

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Step 3

Requirement b:

Calculate the net pay for the ...

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Amount Amount Particulars Gross pay $1,400.00 Withholding deductions: Federal income tax $239.15 Social security tax (3) $84.00 Medicare tax (4) $21.00 Total withholdings $344.15 Net pay (take-home) $1,055.85

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