Calculate Payroll

An employee earns $25 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 52 hours during the week, determine the employee's (a) gross pay and (b) net pay for the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $225.