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5 November, 23:04

An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the first week of the calendar year are as follows: hours worked, 46; federal income tax withheld, $110; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? If required, round your answers to the nearest cent.

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  1. 5 November, 23:12
    0
    Net pay $569.88

    Explanation:

    Let the gross earnings be:

    $15 * 40 = $600

    $15 * 1.5 * 6 = $135

    $600+$135

    =$735

    Withheld Federal income tax = $110

    Social security tax rate = 0.06 * $735

    = $44.10

    Medicare tax rate = 0.015 * $735

    = $11.02

    Net pay $569.88

    ($735 - $110 - $44.10 - $11.02)

    Amount to be paid to the each employee will be $569.88
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