Asked by April Lawrenz on Apr 26, 2024

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Thomas Martin receives an hourly wage rate of $40, with time-and-a-half pay for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $350; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the gross pay for Martin?

A) $449
B) $1,730
C) $2,080
D) $1,581

Gross Pay

The total compensation a person receives before any deductions or taxes are taken out.

Medicare Tax Rate

The percentage of an individual's or employer's earnings that is contributed to Medicare, a U.S. federal health insurance program.

Hourly Wage Rate

The amount of money paid for each hour of work.

  • Understand the variances between gross pay, net pay, and taxable wages.
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JF
jailson fernandes

May 03, 2024

Final Answer :
C
Explanation :
To calculate Martin's gross pay, we need to calculate his regular pay and overtime pay separately.

Regular pay: Martin worked 40 hours at his regular wage rate of $40 per hour, so his regular pay is:

40 hours x $40/hour = $1,600

Overtime pay: Martin worked an additional 8 hours, so he is entitled to time-and-a-half pay for those 8 hours. His overtime wage rate is:

$40/hour x 1.5 = $60/hour

His overtime pay is:

8 hours x $60/hour = $480

To find his gross pay, we add his regular pay and overtime pay together:

$1,600 + $480 = $2,080

Therefore, the correct answer is C) $2,080.