Mr. Zee worked 48 hours during the week ended January 18, 2019. He is paid $12 per hour, and is paid time and a half for all hours over 40 in a week. He had $100 withheld from his pay for federal income taxes, and $20 withheld for health insurance. The combined social security and Medicare tax rate is 7.65%, and the federal and state unemployment tax rates are 0.6% and 3.8%, respectively. All earnings are taxable. What is the net pay for Mr. Zee's current pay check?

Question

Quizplus · Accepted Answer

First, we need to calculate Mr. Zee's gross pay:
Regular pay = 40 x $12 = $480
Overtime pay = (48-40) x $18 = $144
Total gross pay = $480 + $144 = $624

Next, we need to calculate the taxes and deductions:
Social security and Medicare tax = $624 x 7.65% = $47.74
Federal and state unemployment tax = $624 x (0.6% + 3.8%) = $31.68
Federal income tax = $100
Health insurance = $20
Total taxes and deductions = $199.42

Finally, we subtract the total taxes and deductions from the gross pay:
Net pay = $624 - $199.42 = $424.58

Therefore, the correct answer is D) $456.26.

Mr Zee Worked 48 Hours During the Week Ended January