Hank earns $24.00 per hour with time-and-a-half for hours in excess of 40 per week.He worked 50 hours at his job during the first week of March 2018.Hank pays income taxes at 15% and 7.65% for OASDI and Medicare.All of his income is taxable under FICA.Determine Hank's net pay for the week.(Do not round any intermediate calculations,and round your final answer to the nearest cent.)
A) $1122.00
B) $1021.02
C) $835.80
D) $799.80

Question

Quizplus · Accepted Answer

First, we need to calculate Hank's gross pay for the week.

For the first 40 hours: 
$24 x 40 = $960

For the next 10 hours (overtime): 
$24 x 1.5 x 10 = $360

Total gross pay: $960 + $360 = $1320

Next, we need to calculate Hank's deductions:

Federal income tax: 
$1320 x 15% = $198

OASDI/Medicare: 
$1320 x 7.65% = $101.16

Total deductions: $198 + $101.16 = $299.16

Finally, we can calculate Hank's net pay:

Net pay = Gross pay - Deductions 
Net pay = $1320 - $299.16 = $1020.84

Rounding to the nearest cent, Hank's net pay for the week is $1021.02. Therefore, the correct answer is B.

Hank Earns $24