Donna Garland’s regular hourly wage rate is $16.00, and she receives a wage of 11/2 times the regular hourly rate for work in excess of 40 hours. During a March weekly pay period, Donna worked 42 hours. Her gross earnings prior to the current week were $8,000. Donna is married and claims three withholding allowances. Her only voluntary deduction is for group hospitalization insurance at $15.00 per week.
Instructions
(a) Compute the following amounts for Donna’s wages for the current week.
(1) Gross earnings.
(2) FICA taxes. (Assume an 8% rate on maximum of $100,000.)
(3) Federal income taxes withheld. (Use the withholding table in the text, page F-6.)
(4) State income taxes withheld. (Assume a 2.0% rate.)
(5) Net pay.
(b) Record Donna’s pay, assuming she is an office computer operator.