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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.

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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.

$2.19