Question

Thomas Martin receives an hourly wage rate of $40, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $350; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the gross pay for Martin? $1,730 $2,080 $1,574 $449

Answer 1

Answer:

$2,080

Explanation:

Earnings at regular rate (40 x 40) $1,600

Earnings at overtime rate

( 8(40 x 1.5))

=8×60

= $480

Hence:

$1,600 + $480 = $2,080

Therefore the gross pay for Martin will be $2,080