Erin Chang, an employee of Solutions Company, worked 48 hours during the week of

Question

Erin Chang, an employee of Solutions Company, worked 48 hours during the week of October 12 through 18. Her rate of pay is $18.10 per hour, and she receives time-and-a-half for all work in excess of 40 hours per week. Chang is married and claims two allowances on her W-4 form. Her wages are subject to the following deductions: Federal income tax (use the table in Figure 3). Social Security tax at 6.2 percent. Medicare tax at 1.45 percent. Union dues, $24. Compute Chang's regular pay. Round your answer to the nearest cent. $ ------ Compute Chang's overtime pay. Round your intermediate calculations and answers to the nearest cent and use the rounded answers in subsequent computations. $ ------ Compute Chang's gross pay. Round your intermediate calculations and answers to the nearest cent and use the rounded answers in subsequent computations. $ ------- Compute Chang's net pay. If required, round intermediate calculations to the nearest cent and use them in subsequent computations. Round final answer to the nearest cent. $ -------

Explanation / Answer

Normal rate per hour      =       $ 18.1 per hour

Overtime rate per hour is 1.5 times of normal rate per hour.

Overtime rate per hour    = 18.1*1.5    = $ 27.15 per hour

Gross pay      =40*18.1 + 8*27.15

                     = $ 941.2

Gross Pay 941.2 Less Federal tax 141.18 Assume federal tax rate is 15% Less Social Security tax 58.35 Less Medicare tax 13.64 Less Union dues 24 Net pay 704.01

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