Mary Strand’s regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period, Mary works 45 hours. Mary’s federal income tax withholding is $85, and she has no voluntary deductions. Compute Mary Strand’s gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65%. (Round answers to 2 decimal places, e.g. 15.25.)

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monica789412 monica789412 · Answer 1 · 2020-04-30T08:37:05+02:00

Mary Strand’s gross earnings and net pay for the pay period is as following

Explanation:

C worked 48 hours, and anything over 40 hours is overtime. So C worked 40 regular hours and 8 overtime hours.

40 into $14.00 = $560.00

8 plus $21 = $168.00

Therefore C's gross pay was 560.00 plus 168.00 = 728.00

Let's assume that the FICA tax also included the Social Security tax. So, her FICA tax is 0.0765 into 728.00 = 55.692

Hence,

Gross pay minus Fed. Income Tax minus FICA = Net pay

$728.00 minus $97.00 minus $55.692 = $575.308