Exam (elaborations)
FPC Chapter 2.8 (1).
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FPC Chapter 2.8 (1).
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FPC Chapter 2.8The formula for calculating an employee's net pay is:
A. other deductions, plus gross pay, less tax deductions.
B. gross pay, less taxes withheld, plus other deductions.
C. gross pay, less taxes withheld, less other deductions.
D. gross pay, plus tax deductions, plus other deductions. - ANS-C. gross pay, less taxes
withheld, less other deductions
Calculate an employee's net pay based on the following information.
- Paid weekly
- Hourly rate = $10.00 per hour
- Hours worked = 45
- W-4 status = Married, two allowances
- YTD Wages = $35,000.00
- Using the percentage method
- No state or local income taxes
A. $386.84
B. $406.18
C. $402.37
D. $423.14 - ANS-D. $423.14
$10.00 * 40 = $400.00 - Non Overtime Wages
$15.00 * 5 = $75.00 - Overtime Wages
$400.00 + $75.00 = $475.00 = Gross Wages
$77.90 * 2 = $155.80 - Withholding Allowences
$475.00 - $155.80 = $319.20 - Difference
$319.20 * 0.15 + $35.70 = 83.58
$83.58
Using the information below, calculate the employee's net pay.
Regular pay $1,312.50
Overtime pay 25.50
Federal income tax 135.00
State income tax 45.00
Social security tax 82.96
Medicare tax 19.40 - ANS-$1055.64
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