To calculate the net pay for employee 0010, we need to follow these steps:
1. Calculate the overtime pay:
- The overtime rate is "time-and-a-half," which means it is 1.5 times the regular rate.
- Regular hourly rate = [tex]$15.00
- Overtime hours worked = 2
- Overtime pay = Overtime hours × (Regular hourly rate × 1.5)
2. Calculate overtime pay amount:
Overtime rate = $[/tex]15.00 × 1.5 = [tex]$22.50
Overtime pay = 2 × $[/tex]22.50 = [tex]$45.00
3. Confirm the gross pay:
Gross pay is given as $[/tex]645.00.
4. Calculate the total pay deductions:
- Federal Income Tax (FIT) = [tex]$57.00
- Federal Insurance Contributions Act (FICA) = $[/tex]43.61
- Health insurance = [tex]$15.00
- Dental insurance = $[/tex]5.00
5. Calculate total deductions:
Total deductions = FIT + FICA + Health insurance + Dental insurance
Total deductions = [tex]$57.00 + $[/tex]43.61 + [tex]$15.00 + $[/tex]5.00 = [tex]$120.61
6. Calculate the net pay:
- Net pay = Gross pay - Total deductions
- Net pay = $[/tex]645.00 - [tex]$120.61 = $[/tex]524.39
Hence, the net pay for employee 0010 is $524.39.
