02.09 Computing Net Pay

Tang worked 52 hours last week. His hourly rate is $7.80. How much did he earn in overtime pay?

$140.40

Tang worked 52 hours last week. His hourly rate is $7.80. What was his salary, not including overtime pay?

$312

Charlie worked 38 hours last week. Her hourly rate is $8.25. What was her salary, not including overtime pay?

$313.50

Charlie worked 38 hours last week. Her hourly rate is $8.25. What was his gross pay? (regular pay plus overtime pay)

$313.50

Maureen worked 48 hours last week. Her hourly rate is $8.00. What was her salary, not including overtime pay?

$320

Maureen worked 48 hours last week. Her hourly rate is $8.00. What was her gross pay? (regular pay plus overtime pay)

$416

Tang worked 52 hours last week. His hourly rate is $7.80. What was his gross pay? (regular pay plus overtime pay)

$452.40

Maureen worked 48 hours last week. Her hourly rate is $8.00. How much did she earn in overtime pay?

$96

How to calculate: Medicare

.0145*Gross pay

The overtime pay rate

1.5 times the regular rate of pay

Federal Income Tax:

10% X Gross pay

How to calculate: Salary

40 * how much you are paid per hour

Work hours

40 hours a week, anything about that will be counted as overtime. For example, if you worked 60 hours a week, you worked 20 hours overtime.

How to calculate: Savings

5%*Gross pay

Social Security Tax:

62% X Gross pay

Deductions—both required and voluntary

Are subtracted from gross pay to compute net pay.

Mandatory Deductions

Federal Income Tax, Social Security and Medicare

How to calculate: Net pay

Gross Pay - Total Deductions

Formula for calculating overtime pay when you know the regular pay and the gross pay.

Gross pay = Regular pay + Overtime pay becomes GP=RP+x to find the overtime pay. Example: GP=RP+OP 400.5=360+x 400.5-360=360-360+x 40.5=x=overtime pay

Kerry worked 46 hours last week. His hourly rate was $8.25. He has the following deductions taken from his pay: federal income tax at the rate of 10%, Social Security Tax at the rate of 6.2%, Medicare tax at the rate of 1.45%, health insurance premiums of $24.00, and union dues of $9.50. Match the correct amount to the ??? below.

Gross pay: $404.25 Federal tax: $40.43 Medicare: $5.86 Total Deductions: $104.85

Voluntary Deductions

Health insurance and savings

How to calculate: Overtime

Hourly pay rate x 1.5 x overtime hours worked. The overtime pay rate is 1.5 times the regular rate of pay.

Gross pay

Includes regular hours times regular pay, plus overtime hours times overtime pay.

401(k) Retirement Plan

Is 5% of your gross pay

Overtime

Is paid when a person works more than 40 hours a week, but only if they are an hourly employee. Salaried employees do not receive overtime.

How to calculate: Total deductions

Mandatory deductions + Voluntary deductions

Susan works for a salary of $3,600 per month. She has federal income tax withheld at the rate of 15%, Social Security tax at the rate of 6.2%, Medicare tax at the rate of 1.45%, and health insurance premiums of $48 per month. Susan also contributes to a savings plan. Each month, 2% of her gross pay is placed in the plan. Match the correct amount to the ??? below.

Overtime: $0 Gross Pay: $3,600 Health Insurance: $48 Savings: $72 Net Pay: $2,664.60

John worked 43 hours last week; his hourly rate is $9.00 He has the following deductions taken from his pay: Social Security Tax at the rate of 6.2%, Medicare tax at the rate of 1.45%, health insurance premiums of $15.00, and 401k (retirement savings) contributions of 5% gross pay. John also has federal income tax withheld at the rate of 10%. Match the correct amount to the ???below.

Salary: $360 Overtime: $40.50 Health Insurance: $15 Retirement: $20.30 Net Pay: $294.78

Charlie worked 38 hours last week. Her hourly rate is $8.25. How much did she earn in overtime pay?

Zero

How to calculate: Gross pay

regular play + overtime pay