In: Accounting
Sadie White receives an hourly rate of $30, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $300; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to White?
$1,143.00
$1,260.00
$1,443.00
$1,000.00
Net Amount to be paid to white
Wages for the current week
For 40hours =40*30 =1200
For excess of 40(48-40=8)=8*45(30+15)=360
Total =1,560
Less:Federal Income tax withheld =300
Less:Social security tax(6%*1560) =93.60
Less:-Medicare tax rate(1.5%*1,560) =23.40
Amount to be paid to white =$1,143
Answer is A