Asked by
Adugnaw Bamlaku
on Oct 15, 2024
Verified
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 $128,400 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?
A) $736
B) $784
C) $1,104
D) $1,156
E) $1,004
FICA Social Security
A U.S. government program funded through payroll taxes that provides benefits to retirees, disabled individuals, and survivors.
FICA Medicare
FICA Medicare refers to the portion of the Federal Insurance Contributions Act tax that is designated for Medicare, providing health insurance for individuals over 65 and some younger people with disabilities.
Gross Pay
The total amount of money earned by an employee before any deductions or taxes are applied.
- Master the concepts of calculating payroll taxes expense and net salary within payroll accounting.
Verified Answer
KG
Learning Objectives
- Master the concepts of calculating payroll taxes expense and net salary within payroll accounting.