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    Gross Pay and Net Pay

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    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.

    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.
    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

    (a) 1. Regular 40 X $14.00 = $560.00
    Overtime 2 X $21.00 = 42.00
    Gross earnings $ 602.00
    2. FICA taxes?$48.16 = ($602 X ...

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