An employee earns $40 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 $610 was withheld. a. Determine the gross pay for the week. 2,650 V b. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent, if rounding is required. 1,841
An employee earns $40 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 $610 was withheld. a. Determine the gross pay for the week. 2,650 V b. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent, if rounding is required. 1,841
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chp. 8
Transcribed Image Text:Compute payroll
An employee earns $40 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 $610 was withheld.
a. Determine the gross pay for the week.
2,650 V
b. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent, if rounding is required.
$
1,841 X
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a. Gross pay = Regular Working Hours x Regular Pay Rate + Additional Hours x Overtime Pay Rate
b. Net pay is the gross pay minus the withholdings for federal, Medicare and social security taxes. Calculate Medicare and social security by multiplying the respective percentages with the
gross pay.
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