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An employee receives an hourly wage rate of $25, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 42; federal income tax withheld, $147; cumulative earnings for the year prior to this week, $25,044; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; and federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? Round your answer to the nearest cent. a.$1,575.00 b.$822.38 c.$847.38 d.$1,075.00

An employee receives an hourly wage rate of $25, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 42; federal income tax withheld, $147; cumulative earnings for the year prior to this week, $25,044; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; and federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? Round your answer to the nearest cent. a.$1,575.00 b.$822.38 c.$847.38 d.$1,075.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An employee receives an hourly wage rate of $25, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 42; federal income tax withheld, $147; cumulative earnings for the year prior to this week, $25,044; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; and federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? Round your answer to the nearest cent.

a.$1,575.00
b.$822.38
c.$847.38
d.$1,075.00
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