Question

Jeff jones earns $1,200 per week. he is married and claims four withholding allowances. the social security rate is 6.2% on $118,500, and medicare is 1.45%. each paycheck, his employer also deducts $42.50 for health insurance. what is his net pay? (calculate fit by percentage method.)

Answer 1

Answer: Gross Pay: $1200 Less Health Ins: (42.50) Taxable Pay: 1157.50 SS Tax: 71.77 (1157.50 *.062) Medicare Tax: 16.78 (1157.50 *.0145) FIT: 91.79 Net Pay: 977.17 FIT calcualted as follows: Taxable less allowances (1157.50 less (71.15*4) = 872.9 (872.9 * .15)-39.15 = 91.79