Name of Student Quiz SCORE An employee earns 40 per hour and

Name of Student Quiz SCORE An employee earns $40 per hour and 1.5 times that rate for all hours in excess of 40 hours per week Assume that the employee worked 60 hours during the week, and that the gross pay prior to the current week totaled $58,000. Assumef up to $100,000), the Medicare tax rate was 1.5%, and the federal income tax to be withheld was S614. Required: pos ) Determine the gross pay for the wedk. Sopes (2) Determine the net pay for the week.

Solution

1)

Calculation of gross pay for the week

Normal pay per hour

40$

Over time pay after 40 hours

60$

No of hours worked

60 hours

Therefore, Gross pay =

Normal pay =

$1,600.00

Overtime pay =

$1,200.00

Gross pay   =

$2,800.00

2)

Net Pay

   Gross Pay   =

$2,800.00

Less : Social security tax @ 7%

$196.00

Less : Medicare tax @ 1.5%

$42.00

Less: withholding of Income tax

$614.00

Net Pay

$1,948.00

1)	Calculation of gross pay for the week
	Normal pay per hour	40$
	Over time pay after 40 hours	60$
	No of hours worked	60 hours
	Therefore, Gross pay =
	Normal pay =	$1,600.00
	Overtime pay =	$1,200.00
	Gross pay   =	$2,800.00
2)	Net Pay
	Gross Pay   =	$2,800.00
	Less : Social security tax @ 7%	$196.00
	Less : Medicare tax @ 1.5%	$42.00
	Less: withholding of Income tax	$614.00
	Net Pay	$1,948.00