Rick Davis, an employee of ABC Motors, worked 42 hours during the week of September 12 through
Question:
Rick Davis, an employee of ABC Motors, worked 42 hours during the week of September 12 through 18. His rate of pay is $ 30 per hour, and he receives time- a-half for work in excess of 40 hours per week. Rick is married and claims zero allowances on his W- 4 form. Rick’s YTD earnings before this pay period are $ 47,250, and his wages are subject to the following deductions:
a. Federal income tax use the table in Figure.
b. Social Security tax at 4.2 percent, with a wage limit of $ 106,800.
c. Medicare tax at 1.45 percent.
d. Medical insurance premium (after tax), $ 75.
e. United Way contribution, $ 25.
Required
Compute Rick’s regular pay, overtime pay, gross pay, and net pay.
Step by Step Answer:
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille