Question: Calculating and Recording Net Pay Assume that Nora Jones worked 46 hours this week. Her regular wage rate is $13 per hour, and the overtime rate is 1½ times the regular pay rate. She is single, paid weekly, claims three allowances, pays federal but no state, county, or city income tax, and requested voluntary deductions of $8 each week for WWF (a charitable organization).
Required: 1. Using the tax bracket table and assuming total FICA taxes equal to 8 percent, calculate (a) gross earnings, (b) payroll deductions, and (c) net pay. If necessary, round to the nearest penny.
2. Prepare the journal entry to record this payroll assuming Nora is paid by check but the payroll deductions have not been remitted. (Ignore employer payroll taxes.)