Sadie White receives an hourly rate of $30, with time and a half 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
B) $1,143
C) $1,260
D) $1,560

Question

Quizplus · Accepted Answer

Gross pay = Earnings at regular rate + Earnings at overtime rate = [($30 × 40 hours) + ($30 × 1.5 × 8 hours)] = $1,560
Net pay = Gross pay - (Federal income tax + Social security tax + Medicare tax) = $1,560 - [$300 + ($1,560 × 6.0%) + ($1,560 × 1.5%)] = $1,143

Sadie White Receives an Hourly Rate of $30, with Time