Rick Davis, an employee of ABC Motors, worked 42 hours during the week of September 12 through 18. His rate of pay is $30 per hour, and he receives time-a-half for work in excess of 40 hours per week. Rick is married and claims zero allowances on his W-4 form. Rick’s YTD earnings before this pay period are $47,250, and his wages are subject to the following deductions: a. Federal income tax (use the table in Figure 3, pages 331–332). b. Social Security tax at 6.2 percent, with a wage limit of $113,700. c. Medicare tax at 1.45 percent. d. Medical insurance premium (after tax), $75. e. United Way contribution, $25. Required Compute Rick’s regular pay, overtime pay, gross pay, and net pay.

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College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter
Section
Chapter 7, Problem 5PB
Textbook Problem

Rick Davis, an employee of ABC Motors, worked 42 hours during the week of September 12 through 18. His rate of pay is $30 per hour, and he receives time-a-half for work in excess of 40 hours per week. Rick is married and claims zero allowances on his W-4 form. Rick’s YTD earnings before this pay period are $47,250, and his wages are subject to the following deductions:

  1. a. Federal income tax (use the table in Figure 3, pages 331–332).
  2. b. Social Security tax at 6.2 percent, with a wage limit of $113,700.
  3. c. Medicare tax at 1.45 percent.
  4. d. Medical insurance premium (after tax), $75.
  5. e. United Way contribution, $25.

Required

Compute Rick’s regular pay, overtime pay, gross pay, and net pay.

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