Explore BrainMass

Gross Pay and Net Pay

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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.
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.

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 ...

Solution Summary

The solution explains how to calculate the gross pay and net pay and the related journal entry

\$2.19