Sadie white receives an hourly rate of $30, with time and a half for all hours worked in excess of 40 during a week. payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $300; social security tax rate, 6.0%; and medicare tax rate, 1.5%. what is the net amount to be paid to white?
$1,143.00
$1,260.00
$1,443.00
$1,000.00

$1,143

Explanation:

Given:

Hourly rate = $30

Amount paid for excess hours = $30 + half the rate =$30 + $15 = $45

Normal working hours = 40

Hours worked = 48

Excess hours worked = ( 48 - 40 ) = 8

federal income tax withheld = $300

Now,

The total income = $30 × 40 + $45 × 8 = 1200 + 360 = $1560

Now,

The total deductions from the income

federal income tax withheld = $300

social security tax rate = 6.0%  

or

The social tax = 0.06 × $1560 =  $93.6

Medicare tax rate = 1.5%

or

The medicare tax = $23.4

Therefore,

the total deductions

= federal income tax withheld + social security tax + Medicare tax

the total deductions = $300 + $93.6 + $23.4 = $417

Hence,

the net income = Total income - Total deductions

or

The net income = $1560 - $417 = $1,143

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