Sadie White receives an hourly wage rate of $30, with time-and-a-half pay for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $300; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to White?
A) $1,443.00
B) $1,143.00
C) $1,260.00
D) $1,000.00

Question

Quizplus · Accepted Answer

Sadie's regular pay for 40 hours is $1,200 (40 x $30). For 8 overtime hours, she earns $45 per hour (1.5 x $30), totaling $360 (8 x $45). Her gross pay is $1,560 ($1,200 + $360). Deductions include $300 for federal tax, $93.60 for social security tax (6% of $1,560), and $23.40 for Medicare tax (1.5% of $1,560). Total deductions are $417. The net pay is $1,143 ($1,560 - $417).

Sadie White Receives an Hourly Wage Rate of $30, with Time-And-A-Half