Richie Riches, a clothing resale store, employs one salesperson, Danielle Hopeton. Hopeton's straight-time wage is $30 per hour, with time-and-a-half pay for hours above 40. Richie Riches withholds income tax (20%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hopeton's pay. Richie Riches also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.6%, respectively). During the week ended December 26, Hopeton worked 50 hours. Prior to this week, she had earned $1,600. Read the requirements. Requirement 1. Compute Hopeton's gross pay and net (take-home) pay for the week. Begin with the computation of gross pay. (Round all amounts to the nearest whole dollar.) Gross Pay: Straight-time pay for 40 hours Overtime pay for 10 hours Gross Pay Now calculate net (take-home) pay. (Round all amounts to the nearest whole dollar.) Withholding deductions: Employee income tax Employee OASDI tax Employee Medicare tax Net (take-home) pay 1200

Richie Riches, a clothing resale store, employs one salesperson, Danielle Hopeton. Hopeton's straight-time wage is $30 per hour, with time-and-a-half pay for hours above 40. Richie Riches withholds income tax (20%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hopeton's pay. Richie Riches also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.6%, respectively). During the week ended December 26, Hopeton worked 50 hours. Prior to this week, she had earned $1,600. Read the requirements. Requirement 1. Compute Hopeton's gross pay and net (take-home) pay for the week. Begin with the computation of gross pay. (Round all amounts to the nearest whole dollar.) Gross Pay: Straight-time pay for 40 hours Overtime pay for 10 hours Gross Pay Now calculate net (take-home) pay. (Round all amounts to the nearest whole dollar.) Withholding deductions: Employee income tax Employee OASDI tax Employee Medicare tax Net (take-home) pay 1200

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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