An employee is paid bi-monthly at an hourly rate of $10.62.  Assume the work schedule for the bi-monthly period is 11 work days and the employee works a full 8 hour day plus 2 hours overtime each day.  There is no overtime pay differential; all hours are paid at straight time.  The employee’s earnings are subject to Federal Income Tax withholding of 28% and a Social Security deduction of 7.65%.  There is also a deduction of $4.27 for insurance.  What is the employee’s net pay?

Step 1: Calculate the total hours worked in the bi-monthly period.

The employee works 8 hours a day plus 2 hours of overtime, which equals 10 hours a day. Multiply this by the 11 work days in the period to get the total hours worked.

10 hours/day * 11 days = 110 hours

Step 2: Calculate the gross pay.

The employee is paid $10.62 per hour. Multiply this by the total hours worked to get the gross pay.

$10.62/hour * 110 hours =$1168.20

Step 3: Calculate the total deductions.

The employee's earnings are subject to a Federal Income Tax withholding of 28% and a Social Security deduction of 7.65%. Add these percentages together to get the total percentage of deductions.

28% + 7.65% = 35.65%

Now, calculate the total amount of these deductions by multiplying the gross pay by the total percentage of deductions (expressed as a decimal).

$1168.20 * 0.3565 =$416.54

Don't forget the insurance deduction of $4.27.

Step 4: Calculate the net pay.

Subtract the total deductions from the gross pay to get the net pay.

$1168.20 -$416.54 - $4.27 =$747.39

So, the employee's net pay for the bi-monthly period is $747.39.