Martin Jackson receives an hourly wage rate of $17, with time-and-a-half pay 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, $163; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to Jackson, rounded to the nearest cent?
Hourly rate = $17
Overtime rate = 17 x 1.5
= $25.5 per hour
Normal working hours = 40
Actual working hours = 48
Gross pay = 40 x 17 + 8 x 25.5
= 680 + 204
= $884
Social security tax = 6% of gross pay
= 6% x 884
= $53.04
Medicare tax = 1.5% of gross pay
= 1.5% x 884
= $13.26
Federal income tax withhold = $163
Net pay = Gross pay - Federal income tax with hold - Social security tax - medicare tax
= 884 - 163 - 53.04 - 13.26
= $654.70
Martin Jackson receives an hourly wage rate of $17, with time-and-a-half pay for all hours worked...