Question

An employee receives an hourly wage rate of $23, with time-and-a-half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 43; federal income tax withheld, $133; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; and federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? Round your answer to the nearest cent.

Answer 1

	Net amount to be paid to the employee:
					$	$
	Gross wages:
	Regular earnings		(40*23)		920
	Overtime earnings		(43-40)*23*1.5		103.5
	Total					1023.5
	Less:
	Federal income tax withheld				133
	Social security tax		(1023.50*6%)		61.41
	Medicare tax		(1023.50*1.5%)		15.35	209.76
	Net amount to be paid to the employee					813.74
	state unemployment compensation tax and federal unemployment compensation tax are the liability of the employer