Bobby Darling is the only employee of Atlantic Records, Inc. During the first we
ID: 2478839 • Letter: B
Question
Bobby Darling is the only employee of Atlantic Records, Inc. During the first week of January, Darling earned $2,600.00 and had federal and state income tax withholdings of $130.00 and $48.75, respectively. FICA taxes are 7.65 % on earnings up to $117,000. State and federal unemployment taxes for the period are $162.50 and $26.00, respectively.
What would be the amount of Darling’s payroll check for the first week of January?
$2,600.00
$2,222.35
$2,033.85
$2,401.10
What would be the amount of Darling’s payroll check for the first week of January?
Explanation / Answer
Answer:The amount of Darling’s payroll check for the first week of January is:
Net pay = Gross earnings – Withheld income taxes payable – FICA payable – Voluntary deductions
=2600-[2600*(0.0765)+$130+$48.75-$0]
=$2222.35