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 2020. He earns $40.50/hour, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $137,100 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 = $ 1,741.50 X Taxable income for social security tax = $ 600.00 Taxable income for medicare tax = $ 1,741.50 2: An employee works 37 regular hours during a workweek in August of 2020. He was hired four years ago, earns a salary of $135,100/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 = $ 2,598.08 X Taxable income for social security tax = $ 2,600.00 X Taxable income for medicare tax = $ 2,598 50 X 3: An employee works 50 hours (50 - 40 were overtime hours) during a workweek in December of 2020. He earns $9.500/month, with his employer paying 1.5 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 = $ 3,265.70 X Taxable income for social security tax = $ 23,200.00 % Taxable income for medicare tax = $ 3,265.70 X