Portia Grant is an employee who is paid monthly. For the month of January of the
ID: 2480495 • Letter: P
Question
Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 9,238. The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate of 0.8% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,532.87. Her net pay for the month is: (Round your intermediate calculations to two decimal places.) $7,571.18 $6,564.42 $6,566.00 $6,998.42 $5,033.13
Explanation / Answer
FICA Tax for social security=9238*0.062=$572
FICA Tax for Medicare =9238*0.145=$134
FUTA Tax=7000*0.008=56
SUTA Tax=7000*0.054=378
Income Tax withheld=1532.87
Thus Her net Pay=9238-572-134-56-378-1533=$6566
Hence Option B