Calculate Payroll An employee earns $36 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 55 hours during the week. Assume that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was S517.50. a. Determine the gross pay for the week. If applicable, round your final answer to two decimal places. b. Determine thenet pay for the week. Deductions: Contingent Liabilities Some liabilities may arise from past transactions only if certain events occur in the future. These potential liabilities are called contingent liabilities. The accounting for contingent liabilities depends on the following two factors: Likelihood of occurring Measurement The likelihood of occurring is classified as probable reasonably possible or remote The ability to measure the potential liability is classified as estimable or not estimable