An employee receives an hourly rate of $30, with time and a half for all hours worked in excess of 40 during a week.Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $300; cumulative earnings for year prior to current week, $90,700; social security tax rate, 6.0% on maximum of $106,800; and Medicare tax rate, 1.5% on all earnings.What is the net pay for the employee?

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The employee's gross pay is $1,470.00 (40 hours at $30 + 6 hours at $45). Social Security tax is $88.20 (6% of $1,470), and Medicare tax is $22.05 (1.5% of $1,470). After deducting $300 for federal income tax, the net pay is $1,059.75.

An Employee Receives an Hourly Rate of $30, with Time