An Employee Receives an Hourly Rate of $40, with Time

Multiple Choice

An employee receives an hourly rate of $40, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings. What is the gross pay for the employee?

A) $775.00
B) $1,840.00
C) $1,960.00
D) $1,562.60