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An employee earns $ 40 per hour and 1.75 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 $ 58,000. 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 $ 714.
a. Determine the gross pay for the week.b. Determine the net pay for the week.
Discuss how the authoritative literature addresses comprehensive income. Define three classifications within net income and give an example of each. Define three classifications within other comprehensive income and give an example of each.
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