Lenny Florita, an unmarried employee, works 48 hours in the week ended January 12. His pay rate is $14 per hour, and his wages have deductions for FICA Social Security, FICA Medicare, and federal income taxes. He claims two withholding allowances. Compute his regular pay, overtime pay (Lenny earns $21 per hour for each hour over 40 per week), and gross pay. Then compute his FICA tax deduction (6.2% for the Social Security portion and 1.45% for the Medicare portion), income tax deduction (use the wage bracket withholding table from Exhibit 11A.6), total deductions, and net pay. Round tax amounts to the nearest cent.
Lenny Florita, an unmarried employee, works 48 hours in the week ended January 12. His pay rate is $14 per hour, and his wages have deductions for FICA Social Security, FICA Medicare, and federal income taxes. He claims two withholding allowances. Compute his regular pay, overtime pay (Lenny earns $21 per hour for each hour over 40 per week), and gross pay. Then compute his FICA tax deduction (6.2% for the Social Security portion and 1.45% for the Medicare portion), income tax deduction (use the wage bracket withholding table from Exhibit 11A.6), total deductions, and net pay. Round tax amounts to the nearest cent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lenny Florita, an unmarried employee, works 48 hours in the week ended January 12. His pay rate is $14
per hour, and his wages have deductions for FICA Social Security, FICA Medicare, and federal income
taxes. He claims two withholding allowances.
Compute his regular pay, overtime pay (Lenny earns $21 per hour for each hour over 40 per week), and
gross pay. Then compute his FICA tax deduction (6.2% for the Social Security portion and 1.45% for the
Medicare portion), income tax deduction (use the wage bracket withholding table from Exhibit 11A.6),
total deductions, and net pay. Round tax amounts to the nearest cent.
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