Thomas Martin receives an hourly wage rate of $40, with time-and-a-half pay 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

To calculate Martin's gross pay, we need to calculate his regular pay and overtime pay separately.

Regular pay: Martin worked 40 hours at his regular wage rate of $40 per hour, so his regular pay is:

40 hours x $40/hour = $1,600

Overtime pay: Martin worked an additional 8 hours, so he is entitled to time-and-a-half pay for those 8 hours. His overtime wage rate is:

$40/hour x 1.5 = $60/hour

His overtime pay is:

8 hours x $60/hour = $480

To find his gross pay, we add his regular pay and overtime pay together:

$1,600 + $480 = $2,080

Therefore, the correct answer is C) $2,080.

Thomas Martin Receives an Hourly Wage Rate of $40, with Time-And-A-Half