During the first week of January, an employee works 45 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $30 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 $95 in federal income taxes withheld. What is the amount of this employee’s net pay for the first week of January?

Respuesta :

Answer:

Her paycheck for the first week of January will be $1135.49.

Step-by-step explanation:

INCOME:

40 hours x $30 = 1200.00          $30 x 1.5 = $45 per hour for OT

5 hours x $45 = $225.00          

$1200.00 + $225.00 = $1425.00

DEDUCTIONS:

SS: $1425.00 x .062 = $88.35

Medicare: $1425.00 x .0145 = $20.66 (20.6625)

FUTA: $1425.00 x .006 = $8.55

SUTA: $1425.00 x .054 = $76.95

Federal: $95.00

88.35 + 20.66 + 8.55 + 76.95 + 95.00 = $289.51 worth of deductions

HER PAYCHECK:

$1425.00 - $289.51 = $1135.49