An employee 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, 46; federal income tax withheld, $300; cumulative earnings for year prior to current week, $90,700; social security tax rate, 6.0% on maximum of $100,000; and medicare tax rate, 1.5% on all earnings. what is the net amount to be paid the employee?

a. $1,470

b. $1,059.75

c. $1,381.80

d. $1,249.50

Question

Business

Jacquelyn Monroe

2 December, 11:54

An employee 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, 46; federal income tax withheld, $300; cumulative earnings for year prior to current week, $90,700; social security tax rate, 6.0% on maximum of $100,000; and medicare tax rate, 1.5% on all earnings. what is the net amount to be paid the employee?

a. $1,470

b. $1,059.75

c. $1,381.80

d. $1,249.50

+5

Answers (1)

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Ben Monroe · Answer 1

I would say $1059.75 is the net amount the employee would receive for the current week after the deductions. The pay for this employee is 40 hrs x $30 = $1200 + (6 x $45) $270=$1470. Federal income tax deducted is $300, social security is 6% = 0.06x$1470 = $88.20 and medicare is 1.5% = 0.015 x $1470=$22.05. So gross pay = $1470-$300-$88.20-$22.05 = $1059.75.