An employee\'s rate of pay is $50.00 per hour, with time and a half for all hour

Question

An employee's rate of pay is $50.00 per hour, with time and a half for all hours worked in excess of 40 during a week. The following data are available: Allowances claimed on W-4 4 Hours worked this week 52 F I T Withheld $ ? Social Security tax was withheld @ the rate of 6% on the 1st $ 117,000 Medicare tax was withheld @ the rate of 1.5 % The standard withholding allowance is $75 Based on this data, calculate the employee's net pay for the week. Show your calculations. Use the Wage Bracket Withholding table (Exhibit 3) on page 509 to calculate the Federal Income Tax withheld.

Explanation / Answer

Hourly wage Rate = $50

Hours worked = 52

Gross Pay = 52 x $50 = $2600

Less: Social Security Tax withheld = 6% of $2600 = $156

Less: Medicare Tax withheld = 1.5% of $2600 = $39

Less: Standard withholding allowance = $75

Net Pay for the week = $2330

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