An employee earns $36 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week and that the gross pay prior to the current week totaled $52,200. 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 $455. a. Determine the gross pay for the week. b. Determine the net pay for the week. c. Record payroll journal entries.
An employee earns $36 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week and that the gross pay prior to the current week totaled $52,200. 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 $455. a. Determine the gross pay for the week. b. Determine the net pay for the week. c. Record payroll journal entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:An employee earns $36 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the
employee worked 50 hours during the week and that the gross pay prior to the current week totaled $52,200. 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 $455.
a. Determine the gross pay for the week.
b. Determine the net pay for the week.
c. Record payroll journal entries.
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