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Compute payroll An employee earns $16 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 50 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee's federal income tax withheld is $202. a. Determine the gross pay for the week. b. Determine the employee's net pay for the week. When required round interim computations to two decimal places. Round your final answer to two decimal places.

Compute payroll An employee earns $16 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 50 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee's federal income tax withheld is $202. a. Determine the gross pay for the week. b. Determine the employee's net pay for the week. When required round interim computations to two decimal places. Round your final answer to two decimal places.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 4E
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Compute payroll An employee earns $16 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 50 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee's federal income tax withheld is $202. a. Determine the gross pay for the week. b. Determine the employee's net pay for the week. When required round interim computations to two decimal places. Round your final answer to two decimal places.
Transcribed Image Text:Compute payroll An employee earns $16 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 50 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee's federal income tax withheld is $202. a. Determine the gross pay for the week. b. Determine the employee's net pay for the week. When required round interim computations to two decimal places. Round your final answer to two decimal places.
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