The net payable amount to the employee is $14,244.7.
Reason :
The net pay will be calculated by deducting the social security tax, medicare tax, and federal income tax from the employee's gross earnings. The federal and state unemployment compensation tax is not deducted as these are the employer's expenses that are borne by the company.
Calculation:
Gross Earning = (Total No. of hours worked × Rate per Hour) + Excess hours worked × ( Rate per Excess Hour × Rate per Hour)
= 40 × $350 + (50 − 40) × 1.45 ×$ 350
= $ 19,075
Social Security Tax = Total Earning × Social Security Tax Rate
= $ 19,075 × 6.2 %
= $ 1182.65
Medicare Tax = Total Earning × Medicare Tax Rate
= $ 19,075 × 1.45%
= $ 276.587
Net Earning or Net Pay =Total Earning − Federal Income tax −Social Security Tax − Medicare Tax
= $ 19,075− $3,371 − $ 1182.65 −$276.587
=$ 14,244.7
Therefore, The net payable amount to the employee is $14,244.7.
Payroll Accounting:
Payroll Accounting is related to the expenses accrued by the employer. Employee compensation data is being filed and tracked by payroll accounting from paychecks and taxes the employers have withheld from the employee's salaries or wages.
Learn more about Payroll accounting :
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