Ian McCarthy works for Willow Tree Homes. His rate of pay is $16.00 per hour and he is paid one and one-half times the regular rate for all hours worked in excess of 40 per week. During the last week of March of the current year he worked 45 hours. Ian is single and claims 2 withholding allowances on his W-4 form. His weekly wages are subject to the following deductions: a. Employee (Federal) income tax (use withholding table provided).
b. Social Security tax at 6.2%.
c. Medicare tax at 1.45%.
d. Health insurance premium, $60.
e. Credit union deposit, $140.
f. United Way contribution, $15.
Required:
1. Compute McCarthy's regular, overtime, gross, and net pay. If required, round your answers to the nearest cent.
2. Journalize the payment of his wages for the week ended March 26, crediting Cash for the net amount. When required, round your answers to the nearest cent.