Answer:
(a) Calculate gross pay for the weekly pay period is $3,265.60.
(b) Taxable income used to calculate federal income tax withholding, Social Security, and Medicare tax is $98,280.07.
Explanation:
From the question, we can obtain the following:
Number of regular weekly hours = 40
Number of regular monthly hours = Number of regular weekly hours * 4 = 40 * 4 = 160
Number of overtime hours during the workweek = 50 - 40 = 10
Monthly regular pay = $9,500
Weekly regular pay = Monthly regular pay / 4 = $2,375
Regular hourly rate = Monthly regular pay / Number of regular monthly hours = $9,500 / 160 = $59.38
Overtime rate = Regular hourly rate * 1.50 = $59.38 * 1.50 = $89.06
Overtime pay for the workweek = Number of overtime hours * Overtime rate = 10 * $89.06 = $890.60
We can therefore proceed as follows:
(a) Calculate gross pay for the weekly pay period
Gross pay for the weekly pay period = Weekly regular pay + Overtime pay for the workweek = $2,375 + $890.60 = $3,265.60
(b) Determine taxable income used to calculate federal income tax withholding, Social Security, and Medicare tax.
Gross pay = Amount earned to date + Gross pay for the weekly pay period = $109,700 + $3,265.60 = $112,965.60
Contribution to a 403(b) plan = Gross pay * 13% = $14,685.53
Taxable income = Gross pay - Contribution to a 403(b) plan = $112,965.60 - $14,685.53 = $98,280.07
