During the first week of january, an employee works 46 hours. for this company, workers earn 150% of their regular rate for hours in excess of 40 per week. her pay rate is $16 per hour, and her wages are subject to no deductions other than fica social security, fica medicare, and federal income taxes. the tax rate for social security is 6.2% of the first $118,500 earned each calendar year and the fica tax rate for medicare is 1.45% of all earnings. the current futa tax rate is 0.6%, and the suta tax rate is 5.4%. both unemployment taxes are applied to the first $7,000 of an employee's pay. the employee has $80 in federal income taxes withheld. what is the amount of this employee's gross pay for the first week of january?

Respuesta :

$784 Gross pay refers to an employees total salary or wages before deductions such as tax or insurance. This week the employee worked 46 hours. She earned $16 per hour for the first 40 hours. For the remaining six hours she earned $24 per hour (150% of $16). 40 @ 16 = 640 6 @ 24 = 144 640 + 144 = 784 This is her gross pay for the first week of January. Social Security, taxes, insurance, etc., will be deducted from this figure to give her net pay.