An employee worked 40 hours at $12 per hour and 5 overtime hours at 1.5 times regular pay. Federal income taxes were deducted from the employee's pay at a rate of 20 percent. Social Security and Medicare taxes were deducted at a combined rate of 7.65 percent. What was the employee's net pay?
A) $412.40
B) $480.00
C) $570.25
D) $600.50

Question

Quizplus · Accepted Answer

The employee's regular pay for 40 hours is 40 hours * $12/hour = $480. Overtime pay for 5 hours is 5 hours * $12/hour * 1.5 = $90. Total gross pay is $480 + $90 = $570. Total deductions are 20% for federal income tax and 7.65% for Social Security and Medicare, totaling 27.65%. Deductions from gross pay: $570 * 27.65% = $157.605. Net pay is $570 - $157.605 = $412.395, which rounds to $412.40.

An Employee Worked 40 Hours at $12 Per Hour and 5