During a recent week, Maya Schneiderman worked 42 regular hours. She earns $9.25/hour, is paid an overtime rate of 1.5 times her regular wage rate, and has requested that 3% of her gross pay be withheld and contributed to a 401(k) retirement plan. Maya's taxable pay for federal income tax withholding is

Respuesta :

Answer:

$385.82

Explanation:

Maya's total earnings = (40 x $9.25) + (2 x $9.25 x 1.5) = $397.75

Contributions to her 401k retirement plan reduce her taxable income (they are above the line deductions. She will contribute $397.75 x 3% = $11.93.

Her taxable income for federal income tax withholding = $397.75 - $11.93 = $385.82.

The actual amount withheld will depend on Maya's W-4 form (includes information about filing status, dependents, other income, etc.)

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