During the First Week of January, an Employee Works 46

question 115

Multiple Choice

During the first week of January, an employee works 46 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $16 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $80 in federal income taxes withheld.
-What is the amount of this employee's net pay for the first week of January?

• A) $784.00
• B) $139.98
• C) $923.98
• D) $724.02
• E) $644.02

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Definitions:

Strike Call

A term likely meant to be "Call Strike Price," which is the set price at which an option holder can buy an underlying asset.

Interest Rate

Interest Rate is the cost of borrowing funds or the return on investment for savings, expressed as a proportion of the principal, usually displayed on an annual basis.

Expiration

The point in time when a financial contract such as an option or futures contract ceases to exist.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.