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During the Week Ended May 15, 2013, Scott Fairchild Worked

question 20

Essay

During the week ended May 15, 2013, Scott Fairchild worked 40 hours. His regular hourly rate is $14. Assume that his earnings are subject to social security tax at a rate of 6.2 percent and Medicare tax at a rate of 1.45 percent. He also has deductions of $31 for federal income tax and $21 for health insurance.
A) What is his gross pay for the week?
B) What is the total of his deductions for the week?
C) What is his net pay for the week?


Definitions:

Take-home Pay

The net amount of income that an employee receives after deductions like taxes, social security, and retirement contributions are subtracted from their gross salary.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes by interest expenses.

Interest Expense

The cost incurred by an entity for borrowed funds, typically expressed as an annual interest rate on debts such as loans and bonds.

Income Before Depreciation

Earnings calculated by adding back depreciation expenses to net income, providing a view of profitability before accounting for asset depreciation.

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