Question

During the week ended May 15, 2019, Scott Fairchild worked 40 hours. His regular hourly rate is $15. Assume that all of his earnings are subject to social security tax at a rate of 6.2 percent and Medicare tax at a rate of 1.45 percent. He also has deductions of $32 for federal income tax and $22 for health insurance. What is his gross pay for the week? What is the total of his deductions for the week? What is his net pay for the week?

Answer 1

Gross pay = 600

Deductions = 99.9

Net Pay = 500.1

Step-by-step explanation:

Requirement A:

Gross Pay = 40 hours x $15/hour

Gross Pay = $600

Requirement B:

Security Tax ( 600 x 6.2%) = $37.2

Medicare tax ( 600 x 1.45%) = $8.7

Federal Income = $32

Health Insurance = $22

Total deductions = $99.9

Requirement C :

Net Pay = Gross pay - all deductions

Net Pay = $600 - 99.9

Net Pay = 500.1