An employee earns $32 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 55 hours during the week. Assume that the FICA tax rate is 7.5% and that federal income tax of $488 was withheld. a. Determine the gross pay for the week. b. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent, if rounding is required.
An employee earns $32 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 55 hours during the week. Assume that the FICA tax rate is 7.5% and that federal income tax of $488 was withheld. a. Determine the gross pay for the week. b. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent, if rounding is required.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Compute payroll the blanks A &B
Transcribed Image Text:An employee earns $32 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 55
hours during the week. Assume that the FICA tax rate is 7.5% and that federal income tax of $488 was withheld.
a. Determine the gross pay for the week.
b. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent, if rounding is required.
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