Portla Grant Is an employee who is pald monthly. For the month of January of the
ID: 2485379 • Letter: P
Question
Portla Grant Is an employee who is pald 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.) O $5,03313 O $7,57118 O $6,564.4:2 o $6,998.42 O $6,566.0oExplanation / Answer
Correct Answer:
$6564.42
Working note:
Net Payment = Gross salary - Federal income tax – FICA Social security tax - FICA Medicare Tax – FUTA tax – SUTA tax
Net Payment = 9238 – 1532.87 – 9238*6.2% - 9238*1.45% - 7000*.8% - 7000*5.4%
Net payment = $6564.42