Portia Grant is an employee who is paid monthly. For the month of January of the
ID: 340832 • 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 9,188. The FICA tax for social security is 6.2% of the first $118,500 of employee earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of 0.6% 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 $1,524.57. Her net pay for the month is:______ (Round your intermediate calculations to two decimal places.)
Explanation / Answer
January Gross pay 9188 Less FICA social security tax 569.66 (9188*6.2%) FICA medicare tax 133.23 (9188*1.45%) Federal income tax withheld 1524.57 Total 2227.46 Net pay 6960.54 (9188-2227.46)