Question

Thomas Martin receives an hourly wage rate of $40, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows hours worked, 48; federal income tax withheld, $350; social security tax rate, 6.0% and Medicare tax rate, 1.5%. What is the gross pay for Martin?

$1, 730 $2, 080 $1, 531 $449

Answer 1

Ans) Hourly rate = $40

Overtime rate = $40 + $40 * 50% = $40 + $20 = $60

Total hours worked = 48hours

Normal hours worked = 40hours

Overtime hours worked = 8hours

Gross pay = $40 * 40hours + $60 * 8hours

= $1,600 + $480

= $2,080

option 2