Question

An employee earns $5,750 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $208 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $176 and contributes $88 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? a. $5,207.b. 53.c. $5,296.70.d. $5,158.32.e. $4,826.22.f. $4,875.42.

Answer 1

Answer:

$4838.5

Explanation:

We can calculate the amount of net pay for the employee for the month of January by deducting all the monthly expenses from the employee's monthly salary which is $5,750.

Wages Per Month                                 $5,750

Less:

Federal Income Taxes Withheld         $208

FICA Social Security                             $356.5

FICA Medicare                                      $83

Health Insurance                                  $176

Retirement Plan                                 $88

Net Pay for the employee                 $4838.5

Woeking

FICA(social security) = 5,750 x 6.2% = 356.5

FICA(Medicare) = 5750 x 1,45% = 83