An employee earns $32 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 55 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $398. (a) Determine the gross pay for the week. (b) Determine the net pay for the week.

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Kaitlyn Kaiser

14 September, 23:32

An employee earns $32 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 55 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $398. (a) Determine the gross pay for the week. (b) Determine the net pay for the week.

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Boston Schultz · Answer 1

net pay $1452

Explanation:

calculation for gross pay

basic pay - $32 * 40 hr = $1280

bonus 32*1.5 * (55-40) = $720

so total gross pay = 1280+720 = $2000

taxes

social security tax = 6% * 2000 = 120

medicare tax = 1.5% * 2000 = 30

fedral income tax = $398

totaL sum of taxes = 120+30+398 = 548

net pay = 2000 - 548 = $1452