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During the first week of January, an employee works 47 hours
During the first week of January, an employee works 47 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $15 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $81 in federal income taxes withheld. What is the amount of this employee's gross pay for the first week of January?
Multiple Choice 0 $758 n $1.058
Expert Solution
Answer
So, the correct option is 1st "$758".
Explanation
| Computation of Employee's Gross Pay for the first week of January: | ||
| Regular Pay | 600 | =40*15 |
| Overtime Pay | 157.5 | =(47-40)*15*150% |
| Gross Pay | 757.5 | |
| So, Employee's Gross pay is $757.50 or $758. | ||
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