EXERCISE 7-2 Lisa Meilo works for Pacific Company, which pays its employees time- and-a-half for all hours worked in excess of 40 per week. Meilo's pay rate is $37 per hour. Her wages are subject to federal income tax, a Social Security tax deduction at the rate of 6.2 percent, and a Medicare tax deduction at the rate of 1.45 percent. She is married and claims three allowances. Meilo has an unpaid half-hour lunch break during an 8½-hour day. In the most recent pay period, she worked 50 hours. Meilo's beginning cumulative earnings are $73,654. Complete the following: hours at straight time × $. hours overtime X $ a. b. c. Total gross pay d. Federal income tax withholding e. Social Security tax withholding at 6.2 percent f. Medicare tax withholding at 1.45 percent g. Total withholding h. Net pay per hour per hour $ 247.30

EXERCISE 7-2 Lisa Meilo works for Pacific Company, which pays its employees time- and-a-half for all hours worked in excess of 40 per week. Meilo's pay rate is $37 per hour. Her wages are subject to federal income tax, a Social Security tax deduction at the rate of 6.2 percent, and a Medicare tax deduction at the rate of 1.45 percent. She is married and claims three allowances. Meilo has an unpaid half-hour lunch break during an 8½-hour day. In the most recent pay period, she worked 50 hours. Meilo's beginning cumulative earnings are $73,654. Complete the following: hours at straight time × $. hours overtime X $ a. b. c. Total gross pay d. Federal income tax withholding e. Social Security tax withholding at 6.2 percent f. Medicare tax withholding at 1.45 percent g. Total withholding h. Net pay per hour per hour $ 247.30

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 1E

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