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An employee earns $36 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week, and that the gross pay prior to the current week totaled $52,200. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $580. If required, round your answers to two decimal places. a. Determine the gross pay for the week. $ b. Determine the net pay for the week.
Financial Statement Analysis and Preparation
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