Joyce Kieffer’s regular hourly wage rate is $15, and she receives a wage of 11⁄2 times the regular hourly rate for work in excess of 40 hours. During a March weekly pay period Joyce worked 42 hours. Her gross earnings prior to the current week were $6,000. Joyce 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 Joyce’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 497.)

(4) State income taxes withheld. (Assume a 2.0% rate.)

(5) Net pay.

(b) Record Joyce’s pay, assuming she is an office computer operator.