1. Sam receives a regular wage of $15 per hour for a 40 hour week. he receives one and one-half his regular hourly rate for hours over 40 per week and twice his normal rate for Sundays and holidays. Last week Sam worked 62 hours including 8 hours on a holiday. Calculate Sam's gross pay.
2. Calculate Sam's social security and Medicare tax.
3. Assume Sam's federal income tax is $155, union dues are $7 and life insurance is $15.60. What is Sam's net paycheck?
1. Calculation of Sam's gross pay:
- Regular Pay: [$15 * 40 hours] = $600
- Overtime excluding holidays: [$15 * 1.5 * 14 hours] = $315
- Holiday Pay: [$15 * 2 * 8 hours] = $210
Gross Pay = [$600 + $315 + $210] = $1,125
2. Sam's Social Security [6.2%] and Medicare tax [1.45%] amounts to:
- Gross Pay * 7.65%
- $1,125 * 7.65%
= $86
3. Net Paycheck: Amount left after deduction of social security, medicare tax, federal income tax, other dues.
- [$1,125 - $86 - $155 - $7 - $15.6]
Net Paycheck = $861.4
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