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.

Question

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.

Answer 1

Earnings at regular rate (40hrs x $40) = $1600

Earnings at overtime rate 20hrs x $40 x 1.75 = 1400
1400+1600 = 3000

Answer 2

To determine the gross pay for the week, we need to calculate the regular pay and the overtime pay separately.

1. Calculate the regular pay for 40 hours:
Since the employee earns $40 per hour, the regular pay for 40 hours is 40 * 40 = $<<40*40=1600>>1600.

2. Calculate the overtime pay for the remaining 20 hours:
The employee earns 1.75 times the regular rate for the hours exceeding 40. So, the overtime rate is 1.75 * $40 = $<<1.75*40=70>>70 per hour.
For the 20 overtime hours, the overtime pay will be 70 * 20 = $<<70*20=1400>>1400.

3. Add the regular pay and overtime pay to get the gross pay:
The total gross pay for the week will be $1600 + $1400 = $<<1600+1400=3000>>3000.

Therefore, the gross pay for the week is $3000.

Answer 3

To determine the gross pay for the week, we need to consider the employee's regular pay for the first 40 hours and their overtime pay for the additional hours worked.

First, let's calculate the regular pay:
Regular Pay = Regular Rate per hour x Number of Regular Hours
Regular Pay = $40 x 40 hours
Regular Pay = $1600

Next, let's calculate the overtime pay:
Overtime Pay = Overtime Rate per hour x Number of Overtime Hours
Overtime Pay = (1.75 x Regular Rate per hour) x (Total Hours - Regular Hours)
Overtime Pay = (1.75 x $40) x (60 hours - 40 hours)
Overtime Pay = $70 x 20 hours
Overtime Pay = $1400

Now, let's calculate the gross pay:
Gross Pay = Regular Pay + Overtime Pay
Gross Pay = $1600 + $1400
Gross Pay = $3000

Therefore, the gross pay for the week is $3000.