During the First Week of January,an Employee Works 46 Hours

question 186

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) $724.02
• D) $644.02
• E) $923.98

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Definitions:

Cash Flow Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash flows from operations.

Total Assets

Total Assets refer to the sum of all assets owned by a company, including both current and non-current assets, indicating the total resources at a company's disposal.

Company Performance

An evaluation of a company's ability to generate earnings, revenue, and other key metrics for success and stability.

Noncash Investing

Investment activities that do not involve immediate cash transactions, such as acquiring assets through the issuance of stock or the exchange of one asset for another.