Ann Hech's Regular Hourly Wage Is $18 an Hour

question 1

Essay

Ann Hech's regular hourly wage is $18 an hour. She receives overtime pay at the rate of time and a half. The FICA tax rate is 7.65%. Ann is paid every two weeks. For the first pay period in January, Ann worked 86 hours of which 6 were overtime hours. Ann's federal income tax withholding is $400 and her state income tax withholding is $170. Ann has authorized that $50 be withheld from her check each pay period for savings bonds.
Instructions
Compute Ann Hech's gross earnings and net pay for the pay period showing each payroll deduction in arriving at net pay.

---

Definitions:

Dividends to Stockholders

Payments made by a corporation to its shareholder members, usually deriving from the company's earnings.

Comprehensive Income

The total change in equity for a business enterprise during a period from transactions and other events from non-owner sources, encompassing all revenue, expenses, gains, and losses.

Retained Earnings

The accumulated net income of a company that is retained by the company rather than distributed to its shareholders as dividends.

Balance Sheet

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.