posted by Anonymous .
An employee earns $40 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week, and that the gross pay prior to the current week totaled $58,000. Assume further that the social security tax rate was 6.0% (on earnings up to $100,000), the Medicare tax rate was 1.5%, and federal income tax to be withheld was $714.
a. Determine the gross pay for the week.
Earnings at regular rate (40hrs x $40) = $1600
Earnings at overtime rate 20hrs x $40 x 1.75 = 1400
1400+1600 = 3000