Question
ote: In this chapter and in all succeeding work throughout the course, unless instructed otherwise , calculate hourly rates and overtime rates as follows: 1.
ote: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, calculate hourly rates and overtime rates as follows:
1. | Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate). | |
2. | If the third decimal place is 5 or more, round to the next higher cent. | |
3. | If the third decimal place is less than 5, simply drop the third decimal place. | |
Examples: | Monthly rate $1,827 Weekly rate ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $15.81 |
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
Example 4-1
Carl Jamison, an employee for the Scharman School, belongs to a tax-deferred retirement plan to which he contributes 3 percent of his pay which is matched by the school. His biweekly pay is $2,500. Because of the deferral (3% $2,500 = $75), $2,425 is subject to federal income tax withholding.
Julie Whiteweiler made $930 this week. Only social security (fully taxable) and federal income taxes attach to her pay. Whiteweiler contributes $100 each week to her company's 401(k) plan and has $50 put into her health savings account (nonqualified) each week. Her employer matches this $50 each week.
Determine Whiteweiler's take-home pay if she is married and claims 3 allowances (use the wage-bracket method).
Enter deductions beginning with a minus sign (-). Round your calculations and final answers to the nearest cent.
Click here to access the Wage-Bracket Method Tables.
Gross pay | $ |
HSA contributions | |
401(k) deductions | |
OASDI tax | |
HI tax | |
FIT | |
Net pay | $ |
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