Maria Garza\'s regular hourly wage rate is $16, and she receives a wage of 1 1/2
ID: 2637868 • Letter: M
Question
Maria Garza's regular hourly wage rate is $16, and she receives a wage of 1 1/2 times the regular hourly rate for work in excess of 40 hours. During a March weekly pay period, Maria worked 42 hours. Her gross earnings prior to the current week were $6,000. Maria is married and claims three withholding allowances. Her only voluntary deduction is for group hospitalization insurance at $25 per week.
a. Compute the following amounts for Maria's wages for the current week,
1. Gross earnings
2. FICA taxes (Assume a 7.65% rate on maximum of $110,100)
3. Federal income taxes withheld.
4. State income taxes withheld (Assume a 2.0% rate)
b. Record Maria's pay
Explanation / Answer
1. Overtime =2 Hour
Gross Earning=(40*16)+(2*24)=$688
2.FICA taxes @7.65%=$688*.0765=$52.632
3. Federal income taxes withheld=($688-$25)*.0765=$50.72
4.State income taxes withheld=$688*.02=$13.76