PSb $3-2$ Calculate Gross Pay & Taxable Pay

For each employee, first calculate gross pay. Then determine taxable income used to calculate federal income tax withholding, Social Security

tax, and Medicare tax.

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each

calculation.

$1$:

An employee works $42$ hours $(42-40$ were overtime hours$)$ during a workweek in December of $2021.$ He earns $$\frac{40\mathrm{.}50}{h}$our, with his

employer paying $1\mathrm{.}5$ times the regular rate of pay for overtime hours. To date, he has earned $$142,200$ during the year. He has requested

that his employer withhold $7\%$ of gross pay, which is to be contributed to a $403($b$)$ plan.

Taxable income for federal income tax withholding $=$$

Taxable income for social security tax $=$$

Taxable income for medicare tax $=$

$2$:

An employee works $37$ regular hours during a workweek in August of $2021.$ He was hired four years ago, earns a salary of $$140,\frac{200}{?}$ year,

and is exempt from the overtime provisions of the FLSA. To date, he has received no compensation beyond his annual salary. He has

requested that his employer withhold $8\%$ of gross pay, which is to be contributed to a $401(k)$ plan.

Taxable income for federal income tax withholding $=$ :

Taxable income for social security tax $=$

Taxable income for medicare tax $=$$$.$

$3$:

An employee works $50$ hours $(50-40$ were overtime hours$)$ during a workweek in December of $2021.$ He earns $$9,\frac{500}{?}$ month, with his

employer paying $1\mathrm{.}5$ times the regular rate of pay for overtime hours. To date, he has earned $$114,500$ during the year. He has requested

that his employer withhold $13\%$ of gross pay to contribute to a $403($b$)$ plan.

Taxable income for federal income tax withholding $=$$

Taxable income for social security tax $=?$

Taxable income for medicare tax $=?$