Margaret Strand’s regular hourly wage rate is $24, and she receives an hourly rate of $36...

Margaret Strand’s regular hourly wage rate is $24, and she receives an hourly rate of $36 for work in excess of 40 hours. During a January pay period, Margaret works 45 hours. Margaret’s federal income tax withholding is $91, and she has no voluntary deductions.

Compute Margaret Strand’s gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65%. (Round answers to 2 decimal places, e.g. 15.25.)

Margaret’s gross earnings		$
Margaret’s net pay		$

Solutions

Expert Solution

Margaret’s gross earnings [Refer working note 1]	$1,140.00
Margaret’s net pay [Refer working note 2]	$961.79

Working note 1 - Calculation of gross pay

	Hours (a)	Wage rate applicable (b)	Wages (a x b)
Normal working hours	40	$24	$960
Overtime hours [45 hours - 40 hours]	5	$36	$180
Total	45		$1,140

Working note 2 - Calculation of net pay

Gross wages [Refer working note 1]		$1,140.00
Deduct: Withholdings
Federal income tax	$91.00
FICA taxes [Gross wages x 7.65% = $1,140 x 7.65%]	$87.21
Total withholdings		$178.21
Net pay [$1,140 - $178.21]		$961.79

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Beth Corbin’s regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours.

Beth Corbin’s regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Beth works 45 hours. Beth’s federal income tax withholding is $95, she has no voluntary deductions, and the FICA tax rate is 7.65%. Compute Beth Corbin’s gross earnings and net pay for the pay period.

Kimberly Strand’s regular hourly wage rate is $30, and she receives an hourly rate of $45...

Kimberly Strand’s regular hourly wage rate is $30, and she receives an hourly rate of $45 for work in excess of 40 hours. During a January pay period, Kimberly works 48 hours. Kimberly’s federal income tax withholding is $98.00, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%. Prepare the employer’s journal entries to record (a) Kimberly’s pay for the period and (b) the payment of Kimberly’s wages. Use January 15 for the end of...

3. Joy Lee’s regular hourly wage rate is $15, and she receives a wage of 2...

3. Joy Lee’s regular hourly wage rate is $15, and she receives a wage of 2 times the regular hourly rate for work in excess of 40 hours. During a June weekly pay period, Joy worked 50 hours. Joy’s federal income tax withholding is $90 and state income tax is $25 and FICA is 8%. Her only voluntary deduction is for retirement savings at $30 per week. Compute the following amounts for Joy’s wages for the current week. 1. Gross...

Maria Garza's regular hourly wage rate is $16, and she receives a wage of 1 1/2...

Maria Garza's regular hourly wage rate is $16, and she receives a wage of 1 1/2 times the regular hourly rate for work in excess of 40 hours. During a March weekly pay period, Maria worked 42 hours. Her gross earnings prior to the current week were $6,000. Maria is married and claims three withholding allowances. Her only voluntary deduction is for group hospitalization insurance at $25 per week. a. Compute the following amounts for Maria's wages for the current...

1. An employee receives an hourly wage rate of $24, with time-and-a-half for all hours worked...

1. An employee receives an hourly wage rate of $24, 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, 44; federal income tax withheld, $145; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; and federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? Round...

Thomas Martin receives an hourly wage rate of $40, with time and a half for all...

Thomas Martin receives an hourly wage rate of $40, with time and a half 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, $350; social security tax rate, 6.0% and Medicare tax rate, 1.5%. What is the gross pay for Martin? $1, 730 $2, 080 $1, 531 $449

After a one-half increase of his current hourly wage, a man receives a new hourly wage...

After a one-half increase of his current hourly wage, a man receives a new hourly wage of $24.02. How much was his hourly wage before the increase? The hourly wage before the increase was $ ______. Please explain step by step.

PSc 2-5 Determine Hourly Regular and Overtime Wage Rates Determine both the regular and overtime wage...

PSc 2-5 Determine Hourly Regular and Overtime Wage Rates Determine both the regular and overtime wage rates for each of the following employees. All are paid an overtime wage rate 1.5 times their respective regular wage rates. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1: Alice Rhoades earns a weekly wage of $1,200. During the most recent week, she worked 48 hours. Regular Wage Rate...

Martin Jackson receives an hourly wage rate of $17, with time-and-a-half pay for all hours worked...

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?

Mary Stine’s regular hourly wage rate is $12, and is paid one and one-half times her...

Mary Stine’s regular hourly wage rate is $12, and is paid one and one-half times her regular rate for any hours which exceed 40 hours per week. During a March pay period, Mary works 47 hours. Mary’s federal income tax withholding is $70, the applicable FICA tax rate is 8%, there is no state income tax and she has no voluntary deductions. (a) Compute Mary Stine’s gross earnings and net pay for the pay period. Gross earnings: Regular pay ...

Subjects