An employee earns $40 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week and that earnings to date have not reached the maximum subject to FICA taxes. Assume further that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the federal income tax to be withheld is $614. Required: a. Determine the gross pay for the week. $fill in the blank 1 b. Determine the net pay for the week. $fill in the blank 2
An employee earns $40 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week and that earnings to date have not reached the maximum subject to FICA taxes. Assume further that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the federal income tax to be withheld is $614. Required: a. Determine the gross pay for the week. $fill in the blank 1 b. Determine the net pay for the week. $fill in the blank 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An employee earns $40 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week and that earnings to date have not reached the maximum subject to FICA taxes. Assume further that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the federal income tax to be withheld is $614.
Required:
a. Determine the gross pay for the week.
$fill in the blank 1
b. Determine the net pay for the week.
$fill in the blank 2
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