Tony makes an hourly salary of $11.50 for 40 regular hours of work. For anytime worked beyond 40 hours, he is paid at a rate of time and a half per hour. Last week, tony worked 46 hours. Find each of the following for this period

A. Tonys gross pay

B. Social security tax

C. Medicare tax

Given: # of hours worked = 46hrs; regular hourly salary = $11.50; overtime rate = 1.5 per hr

Required:

a.) Gross pay

b.) SS tax

c.) Medicare tax

Solution:

Let's compute first his regular salary. Multiply the given regular hourly rate to 40 hrs which is considered as the regular number of working hour to get the regular salary. Multiply the hourly rate of 11.50 to 1.5 which is the overtime rate, before multiplying the product to the difference of his total working hours and regular working hours to get the overtime payment. Add the two amounts to get the gross salary.

Regular pay = 11.50 x 40hrs = 460

Overtime pay = (11.50 x 1.5) x (46hrs - 40hrs) = 103.50

Gross pay = 460 + 103.50 = 563.50

The social security rate is 6.2%. Multiply the rate to his gross salary to get the SS tax. 6.2% x 563.50 = 34.94

The Medicare rate is 1.45%. Multiply the rate to his gross salary to get the Medicare tax. 1.45% x 563.50 = 8.17

Answers:

a.) Gross Salary = 563.50

b.) SS tax = 34.94

c.) Medicare tax = 8.17