Maria Garzas regular hourly wage rate is $16, and she receives a wage of 1 times the

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Maria Garza’s regular hourly wage rate is $16, and she receives a wage of 1½ 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.

Instructions
(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. (Use the withholding table in the text, page 535.)
(4) State income taxes withheld. (Assume a 2.0% rate.)
(5) Net pay.
(b) Record Maria’s pay.

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Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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