Answer:
$154524
Explanation:
If a federal tax rate is 20% on all wages then we subtract that amount from the total wage of $206000 for the year
20% from $206000 is $41200
$206000 - $41200 = $164800
We have deducted the federal tax rate and got the amount $164800
After we apply the FICA tax rate of 7.65% on the amount $127200 we get
7.65% of $127200 is $9730,8 so the first amount we have to remember is
$127200 - $9370,8 = $117469,2
Regarding the amount that excess $127200 that amount stands at
$164800 - $127200 = $37600
We apply the 1.45% rate to the amount $37600
1.45% of the $37600 is $545,2 so the second amount we have to remember is
$37600 - $545,2 = $37054,8
We now simply add the two calculated amounts
$117469,2 + $37054,8 = $154524
So the net pay for the year is $154524
