Asked by April Lawrenz on Apr 26, 2024
Verified
Thomas Martin receives an hourly wage rate of $40, with time-and-a-half pay for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $350; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the gross pay for Martin?
A) $449
B) $1,730
C) $2,080
D) $1,581
Gross Pay
The total compensation a person receives before any deductions or taxes are taken out.
Medicare Tax Rate
The percentage of an individual's or employer's earnings that is contributed to Medicare, a U.S. federal health insurance program.
Hourly Wage Rate
The amount of money paid for each hour of work.
- Understand the variances between gross pay, net pay, and taxable wages.
Verified Answer
JF
jailson fernandesMay 03, 2024
Final Answer :
C
Explanation :
To calculate Martin's gross pay, we need to calculate his regular pay and overtime pay separately.
Regular pay: Martin worked 40 hours at his regular wage rate of $40 per hour, so his regular pay is:
40 hours x $40/hour = $1,600
Overtime pay: Martin worked an additional 8 hours, so he is entitled to time-and-a-half pay for those 8 hours. His overtime wage rate is:
$40/hour x 1.5 = $60/hour
His overtime pay is:
8 hours x $60/hour = $480
To find his gross pay, we add his regular pay and overtime pay together:
$1,600 + $480 = $2,080
Therefore, the correct answer is C) $2,080.
Regular pay: Martin worked 40 hours at his regular wage rate of $40 per hour, so his regular pay is:
40 hours x $40/hour = $1,600
Overtime pay: Martin worked an additional 8 hours, so he is entitled to time-and-a-half pay for those 8 hours. His overtime wage rate is:
$40/hour x 1.5 = $60/hour
His overtime pay is:
8 hours x $60/hour = $480
To find his gross pay, we add his regular pay and overtime pay together:
$1,600 + $480 = $2,080
Therefore, the correct answer is C) $2,080.
Learning Objectives
- Understand the variances between gross pay, net pay, and taxable wages.