An employee’s rate of pay is $40 per hour, with time and a half for all hours worked in excess of 40 during a week. The social security rate is 6.0% on the first $100,000 of annual earnings, and the Medicare rate is 1.5% on all earnings. The following additional data are available:
|
Hours worked during current week |
45 |
|
Year’s cumulative earnings prior to current week |
$99,400 |
|
Federal income tax withheld |
$450 |
Based on these data, the amount of the employee’s net pay for the current week is:
A. $1,307.50.
B. $1,405.00.
C. $1,450.00.
D. $1,385.50.