Mr Zee Worked 48 Hours During the Week Ended January

question 60

Multiple Choice

Mr. Zee worked 48 hours during the week ended January 18, 2019. He is paid $12 per hour, and is paid time and a half for all hours over 40 in a week. He had $100 withheld from his pay for federal income taxes, and $20 withheld for health insurance. The combined social security and Medicare tax rate is 7.65%, and the federal and state unemployment tax rates are 0.6% and 3.8%, respectively. All earnings are taxable. What is the net pay for Mr. Zee's current pay check?

• A)$167.74
• B)$428.81
• C)$624.00
• D)$456.26

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Definitions:

Sales Discount

A reduction in the price of goods or services offered to a customer, typically used to incentivize prompt payment.

Discount

The interest deducted from the maturity value of a note or the excess of the face amount of bonds over their issue price.

Credit Terms

Conditions under which credit is granted by a lender to a borrower, including repayment period, interest rate, and other clauses.

Payment Arrangements

Agreements between two parties on how a debt will be paid back, often detailing the amount, frequency, and duration of payments.