An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the first week of the calendar year are as follows: hours worked, 46; federal income tax withheld, $110; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? If required, round your answers to the nearest cent.

Respuesta :

Answer:

Net pay $569.88

Explanation:

Let the gross earnings be:

$15 * 40 = $600

$15 * 1.5 * 6 = $135

$600+$135

=$735

Withheld Federal income tax = $110

Social security tax rate =0.06* $735

= $44.10

Medicare tax rate = 0.015* $735

= $11.02

Net pay $569.88

($735 - $110 - $44.10 - $11.02)

Amount to be paid to the each employee will be $569.88

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