During the week ended May 15, 2013, Scott Fairchild worked 40 hours. His regular hourly rate is $31. Assume that his earnings are subject to social security tax at a rate of 6.20 percent and Medicare tax at a rate of 1.45 percent. He also has deductions of $48 for federal income tax and $38 for health insurance.
a.
What is his gross pay for the week?
b.
What is the total of his deductions for the week?
c.
What is his net pay for the week?
a. 560
To answer these questions, we'll need to calculate different elements of Scott Fairchild's pay. Let's go step by step:
a. To calculate his gross pay for the week, we need to consider his regular hourly rate and the number of hours he worked. Multiplying his regular hourly rate of $31 by the 40 hours he worked will give us his gross pay for the week.
Gross pay = Regular hourly rate * Number of hours worked
Gross pay = $31 * 40 = $1240
Therefore, his gross pay for the week is $1240.
b. To find the total of his deductions for the week, we need to consider the deductions for federal income tax and health insurance. Adding these two deductions together will give us the total deductions for the week.
Total deductions = Federal income tax + Health insurance
Total deductions = $48 + $38 = $86
Therefore, the total deductions for the week amount to $86.
c. Finally, to determine his net pay for the week, we subtract the total deductions from his gross pay.
Net pay = Gross pay - Total deductions
Net pay = $1240 - $86 = $1154
Therefore, his net pay for the week is $1154.