Question

John’s gross pay for the week is $500. He pays 1.45 percent in Medicare tax, 6.2 percent in Social Security tax, 2 percent in state tax, 20 percent in federal income tax, and $20 as an insurance deduction. He does not have any voluntary deductions. What is John’s net pay for the week?

Answer 1

Gross pay = 500

deductions :
medicare tax : 0.0145(500) = 7.25
S.S tax : 0.062(500) = 31.00
sales tax : 0.02(500) = 10.00
income tax : 0.2(500) = 100
insurance = 20
total deductions : 7.25 + 31 + 10 + 100 + 20 = 168.25

gross pay - deductions = net pay
500 - 168.25 = net pay
331.75 = net pay <===