Janna is a salaried nonexempt employee in Laramie,Wyoming,who earns $30,000 for a standard 40-hour workweek and is paid biweekly.She is single with one withholding allowance.During the last pay period,she worked 5 hours of overtime.She contributes 3% of her gross pay to her 401(k)on a pre-tax basis and has a garnishment of 10% of her disposable income for a consumer credit garnishment.What is her net pay? (Use the wage-bracket method.Do not round interim calculations,only round final answer to two decimal points. )
A) $998.90
B) $913.90
C) $894.07
D) $886.96

Question

Janna is a salaried nonexempt employee in Laramie,Wyoming,who earns $30,000 for a standard 40-hour workweek and is paid biweekly.She is single with one withholding allowance.During the last pay period,she worked 5 hours of overtime.She contributes 3% of her gross pay to her 401(k)on a pre-tax basis and has a garnishment of 10% of her disposable income for a consumer credit garnishment.What is her net pay? (Use the wage-bracket method.Do not round interim calculations,only round final answer to two decimal points. ) 
A) $998.90 
B) $913.90 
C) $894.07 
D) $886.96

Quizplus · Accepted Answer

Step 1: Calculate Janna's regular pay for the pay period
- Janna earns $30,000 per year, which is equivalent to $1,153.85 per biweekly pay period (30,000/26)
- Because she works a standard 40-hour workweek, her regular rate of pay is $28.85 per hour (1,153.85/40)

Step 2: Calculate Janna's overtime pay for the pay period
- Janna worked 5 hours of overtime, which is paid at 1.5 times her regular rate of pay
- Her overtime rate of pay is $43.28 per hour (28.85 x 1.5)
- Therefore, her overtime pay for the pay period is $216.40 (5 x 43.28)

Step 3: Calculate Janna's gross pay for the pay period
- Janna's gross pay is the sum of her regular pay and overtime pay
- Her gross pay is $1,370.25 ($1,153.85 + $216.40)

Step 4: Calculate Janna's pre-tax 401(k) contribution
- Janna contributes 3% of her gross pay to her 401(k) on a pre-tax basis
- Her pre-tax 401(k) contribution is $41.11 (1,370.25 x 0.03)

Step 5: Calculate Janna's disposable income
- Janna's disposable income is her gross pay minus her pre-tax 401(k) contribution and her garnishment
- Her disposable income is $1,283.14 ($1,370.25 - $41.11 - (0.10 x $1,370.25))

Step 6: Calculate Janna's net pay
- Janna's net pay is her disposable income minus any additional taxes or deductions
- Because we are using the wage-bracket method, we need to use the IRS tax tables for Wyoming to calculate her federal income tax withholding
- Using the tables, we find that her federal income tax withholding for the pay period is $204
- Therefore, her net pay is $894.07 ($1,283.14 - $204)

Janna Is a Salaried Nonexempt Employee in Laramie,Wyoming,who Earns $30,000