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4 May, 05:40

Tami Strand's regular hourly wage rate is $10, and she receives an hourly rate of $20 for work in excess of 40 hours. During a January pay period, Tami works 50 hours. Tami's federal income tax withholding is $88, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%.

Compute Tami Strand's gross earnings and net pay for the pay period.

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  1. 4 May, 09:31
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    Gross earnings = $600

    Net pay = $466.10

    Explanation:

    The computation of the gross earnings and the net pay is shown below:

    Gross earnings

    40 hours * $10 = $400

    10 hours * $20 = $200

    So, the total = $600

    Since tami worked for 50 hours, 10 hours extra so $20 is paid for 1 hours extra. So, for 10 hours it would be $200

    Net pay

    Gross earnings $600

    less: federal income tax withholding - $88

    Less: FICA tax rate @7.65% on $600 - $45.90

    Net pay $466.10
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