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During the first week of January, an employee works 47 hours

Finance Apr 02, 2021

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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