During the first week of January,an employee works 46 hours.For this company,workers earn 150% of their regular rate for hours in excess of 40 per week.Her pay rate is $16 per hour,and her wages are subject to no deductions other than FICA Social Security,FICA Medicare,and federal income taxes.The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings.The current FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.The employee has $80 in federal income taxes withheld.What is the amount of this employee's net pay for the first week of January? (Round your intermediate calculations to two decimal places.)
A)$784.00
B)$139.98
C)$724.02
D)$644.02
E)$923.98

Question

Quizplus · Accepted Answer

The employee earns $16 per hour for 40 hours and $24 per hour (150% of $16) for 6 overtime hours. Total earnings are $736. Deductions include Social Security ($45.63), Medicare ($10.67), and federal income tax ($80). Net pay is $644.02.

During the First Week of January,an Employee Works 46 Hours