Pedja Belics regular hourly wage rate is $15, and she receives a wage of 1 times the

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Pedja Belic’s regular hourly wage rate is $15, and she receives a wage of 1½ times the regular hourly rate for work in excess of 40 hours. During a March weekly pay period, Pedja worked 42 hours. Her gross earnings prior to the current week were $6,000. Pedja is married and claims three withholding allowances. Her only voluntary deduction is for group hospitalization insurance at $25 per week.
Instructions
(a) Compute the following amounts for Pedja’s wages for the current week.
(1) Gross earnings.
(2) FICA taxes. (Assume an 8% rate on maximum of $90,000.)
(3) Federal income taxes withheld. (Use the withholding table in the text, page 521.)
(4) State income taxes withheld. (Assume a 2.0% rate.)
(5) Net pay.
(b) Record Pedja’s pay.

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Accounting Principles

ISBN: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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