Thomas Martin receives an hourly wage rate of $40,with time and a half for all hours worked in excess of 40 hours during a week.Payroll data for the current week are as follows: hours worked,48; federal income tax withheld,$350; social security tax rate,6.0%; and Medicare tax rate,1.5%.What is the gross pay for Martin?
A)$449
B)$1,730
C)$2,080
D)$1,581

Question

Quizplus · Accepted Answer

Regular pay = 40 hrs x $40/hr = $1,600
Overtime pay = 8 hrs x $60/hr (time and a half) = $480
Total gross pay = Regular pay + Overtime pay = $1,600 + $480 = $2,080
Federal income tax withheld = $350
Social security tax = 6.0% x $2,080 = $124.80
Medicare tax = 1.5% x $2,080 = $31.20
Net pay = Gross pay - (Federal income tax withheld + Social security tax + Medicare tax) = $2,080 - ($350 + $124.80 + $31.20) = $1,573.80, which is closest to option D but not exact. Therefore, option C is the closest and most accurate answer.

Thomas Martin Receives an Hourly Wage Rate of $40,with Time