Question

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 47.00 hours. Beth’s federal income tax withholding is $101.00, and 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. (Round answers to 2 decimal places, e.g. 15.25.)

Gross earnings		$
Net pay		$

Answer 1

Answer :- Net Pay $529.52

A.	Total Gross Pay	$808.00
B.	FICA Tax ($143.84+$33.64)	$177.48
C.	Tax withholding	$101.00
D.	Net Pay (A-B-C)	$529.52

A.	Regular Hours worked	40
B.	Hourly rate	$16
C.	Regular pay (A*B)	$640
A.	Hours worked in excess of 40 hours (47-40)	7
B.	Hourly rate in excess of 40 hours worked	$24
C.	Excess pay (A*B)	$168
	Total Pay ( $640 + $168)           = $2,320
	Social security tax = $2,320 * 6.2% = $143.84
	Medicare tax = $2,320 * 1.45 %      = $33.64

- FICA rate is 7.65% whihc consists of 6.2% Social security tax and 1.45% medicare tax