# Payroll Calculations

Betty Williams' regular hourly wage rate is $14.00, and she receives a wage of 1 1⁄2 times

the regular hourly rate for work in excess of 40 hours. During a March weekly pay period Betty worked 42 hours. Her gross earnings prior to the current week were $6,000. Betty is married and claims three withholding allowances. Her only voluntary deduction is for group hospitalization insurance at $15.00 per week.

Instructions

(a) Compute the following amounts for Betty's wages for the current week.

(1) Gross earnings

(2) FICA taxes. (Assume an 8% rate on maximum of $87,900.)

(3) Federal income taxes withheld. (Use the withholding table in the text, page D6.)

(4) State income taxes withheld. (Assume a 2.0% rate.)

(5) Net pay.

(b) Record Betty's pay, assuming she is an office computer operator.

https://brainmass.com/business/business-math/payroll-calculations-93823

#### Solution Preview

Betty Williams' regular hourly wage rate is $14.00, and she receives a wage of 1 1⁄2 times

the regular hourly rate for work in excess of 40 hours. During a March weekly pay period Betty worked 42 hours. Her gross earnings prior to the current week were $6,000. Betty is married and claims three withholding allowances. Her only ...

#### Solution Summary

This solution is comprised of a detailed explanation to compute the following amounts for Betty's wages for the current week.

(1) Gross earnings

(2) FICA taxes. (Assume an 8% rate on maximum of $87,900.)

(3) Federal income taxes withheld.

(4) State income taxes withheld. (Assume a 2.0% rate.)

(5) Net pay.

(b) Record Betty's pay, assuming she is an office computer operator.