Multiple Choice
Which of the following taxes and withholdings typically reduce an employee's paycheck the most in the United States?
22
views
9. Current Liabilities
Payroll and Payroll Taxes
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
An employee worked 40 regular hours at $20 per hour and 5 overtime hours at $30 per hour during the week. What is the employee's gross pay for the week?
A
$1,000
B
$850
C
$800
D
$950
Verified step by step guidance1
Step 1: Identify the components of the employee's gross pay. The gross pay consists of regular pay and overtime pay.
Step 2: Calculate the regular pay by multiplying the regular hours worked (40 hours) by the hourly rate for regular hours ($20/hour). Use the formula:
Step 3: Calculate the overtime pay by multiplying the overtime hours worked (5 hours) by the hourly rate for overtime hours ($30/hour). Use the formula:
Step 4: Add the regular pay and overtime pay to determine the employee's gross pay for the week. Use the formula:
Step 5: Verify the calculation by ensuring the sum of regular pay and overtime pay matches the gross pay provided in the problem.
Related Videos
Related Practice
Payroll and Payroll Taxes practice set
Problem sets built by lead tutorsExpert video explanations