Aaron earns $24.00 per hour with $36 per hour for hours in excess of 40 hours per week. He worked 50 hours at his job during the

Question

3 years ago

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Aaron earns $24.00 per hour with $36 per hour for hours in excess of 40 hours per week. He worked 50 hours at his job during the

first week of March 2020. Aaron pays state and federal income taxes at 15%, and pays 7.65% for FICA(OASDI and Medicare. All of his income is taxable under FICA). Determine Aaron's net pay for the week.

Business

1 answer:

Schach [20] · Answer 1 · 2022-04-13T05:58:50+03:00

Answer:

$1,021

Explanation:

Net income is the net of Gross income and any taxes and deduction.

Income tax and FICA(OASDI and Medicare are calculated on the gross income and

First we calculate the total income using standard and overtime rate

Total Numbers of Hours worked in a week = 50 hours

Standard Hours = 40 hours

Rate of Standard Hours = $24 per hour

Rate of overtime = $36 per hour

Income

Standard = $24 x 40 = $960

Overtime = $36 x (50-40) = $360

Total = $960 + $360 = $1,320

Income tax = Gross Income x Income tax rate = $1,320 x 15% = $198

FICA(OASDI and Medicare = Gross Income x rate = $1,320 x 7.65% = $101

Net Income = $1,320 - $198 - $101 = $1,021