. Jim Moss, an employee of Jones International, worked 49 hours during the week

Question

. Jim Moss, an employee of Jones International, worked 49 hours during the week of April 4th through 10. His rate of pay is $16/hr, and he receives time-a-half for work in excess of 40 hours per week. Jim is married and claims four allowances on his W-2 form. Jim’s YTD earnings before this pay period rate $7,600, and his wages are subject to the following deductions:

a. Federal Income Tax

b. Social Security tax at 6.2%, with wage limit of $113,700

c. Medicare tax at 1.45%

d. Medical insurance premium (after-tax), $50

e. United Way contribution, $10.

Required What will his net pay for that period be?

9. Referring to problem above. Employer will match how much?

Explanation / Answer

Only first part of the question can be answered as the second part "Employer will match how much" is either not related to this question or is not clear as to what is to be matched. The first part of the question is also clear as to for which pay period the calculations have to be performed. Therefore, the net pay for the week mentioned in the question is calculated below. The YTD earnings of $7,600 have not been considered.

_________

The net pay for the week is calculated as follows:

____________

Notes:

There can be a difference in final answer on account of selection of the Year for which the net pay is to be computed.

Regular Pay (40*16) 640 Overtime Pay (9*16*(1.5)) 216 Gross Pay 856 Less Deductions Federal Income Tax (10% for 2015) 86 Social Security Tax (856*6.2%) 53 Medicare Tax (856*1.45%) 12 Medical Insurance Premium 50 United Way Contribution 10 Total Deductions 211 Net Pay $645

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