Rick Davis, an employee of ABC Motors, worked 42 hours during the week of September 12 through

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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.


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College Accounting

ISBN: 978-1111528126

11th edition

Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille

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