Hourly Wage $450
Less: Garnishment $50
Less: Sec 125 deduction $25
Less: Simple IRA $9
Less: Federal Withholding $37
Less: Social Security Tax $26.35
Less: Medicare Tax $6.16
Net Pay = $296.49
What is your answer?
I guess you are considering overtime payment(time and half) for the 5 hours.
If overtime is applicable for this particular employee and if the overtime payment is time and half - than your gross payment of $475 would be correct.
I am available for another 5 minutes and than I will check back tomorrow morning.
Btw, amount towards cafetaria will not be subject to FICA, medicare or federal withholding.
Amount towards Simple IRA will not be subject to federal withholding but will be subject to FICA and medicare.
And amount towards garnishment will not affect the federal withholding or the FICA or medicare.
helloCustomerand I am sorry that you have been waiting so long for an answer. I agree with you in your gross calculation of wages. A non-exempt employee is required to follow the overtime wages by law. Thierfore of the 45 hrs he worked in his week, 5 hours would be computed at 1.5x his normal hourly rate. His gross wages should be $475.
Here is my answer using 2% of gross wages to the IRA
Gross Wages $475
Less Sec. 125 -$25
Less IRA -$9.50
Less Federal Taxes -$40.98
Less Social Security -$27.89
Less Medicare -$6.53
Less garnishment -$50
Take home pay $315.10 Not including state income tax and State disability
I ran this second scenario using The $9 you said in your post, however 2% of gross wages for this pay period is $9.50
Gross wages $475
Less sect 125 -$25
Less IRA -$9
Less Fed Tax witholding -$41.05
Less Social security -$27.89
Less Medicare -6.53
Net earning before garnishment $365.58
Take home pay $315.53