The planning cycle is viewed as a linear process with a sequence of steps; however, it can also be considered cyclical so that a
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Answer:
a. The net pay is correct.
Explanation:
Suppose the missing part of the question which is the gross pay and the federal tax is 1020.00 and 107.00 respectively.
Then, Social Security tax 6.2% of the gross pay =
Social Security tax 6.2% of the gross pay = 0.062 × 1020
Social Security tax 6.2% of the gross pay = $63.24
the Medicare tax is 1.45% of gross pay =
the Medicare tax is 1.45% of gross pay = 0.0145 × 1020
the Medicare tax is 1.45% of gross pay = $14.79
the state tax is 19% of federal tax =
the state tax is 19% of federal tax = 0.19 × 107
the state tax is 19% of federal tax = $20.33
Hence, to determine if Juanita's net pay is correct, we have the summation of all our estimated figures minus the gross pay.
i.e
Juanita's net pay = $1020 - $(107 + 63.24 + 14.79 + 20.33)
Juanita's net pay = $1020 - 205.36
Juanita's net pay = $814.64