An employee receives an hourly wage rate of $22, with time-and-a-half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 45; federal income tax withheld, $127; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; and federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee?

Question

Kylee Stevens

Business

28 June, 14:53

An employee receives an hourly wage rate of $22, with time-and-a-half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 45; federal income tax withheld, $127; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; and federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee?

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Answers (1)

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Alonso · Answer 1

Amount paid to the employee is $ 865.2

Explanation:

Hourly wage = 40 * $22 = $ 880

Excess hours wages = 5 * ($22+$11) = $165

total wages = $1045

deduct federal income tax = $1045 - $127=$918

Social Security deducted at 6% = $880*6%=$52.8 from $918gives $865.2