Question

An employee receives an hourly rate of $15, 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, 48; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the net amount to be paid the employee?

		$568.74
		$601.50
		$660.00
		$574.90

Answer 1

Gross Earanings:
Normal wages (40 hours @ 15)				600
Overtime wages (8 hourrs @22.50)				180
Gross Earanings:				780
Gross Earnings				780
Less: Tax withheld:
Federal income tax				120
FICA social security tax (780*6%)				46.8
Medicare tax (780*1.5%)				11.7
Net amount to be paid				601.5
Answer is $ 601.50