Question

Janice works for a salary of $2,396 per month. She has federal income tax withheld at the rate of 15 percent, Social Security tax at the rate of 6.2 percent, Medicare tax at the rate of 1.45 percent, and health insurance premiums of $95 per month. Janice’s net pay is $_____.

Answer 1

Given that Janice monthly salary is $2,396. And she has deductions of federal income tax withheld at the rate 15%, social security tax at the rate of 6.2% and medicare tax at the rate of 1.45% and health insurance premium worth 95$ per month.

Let us calculate total deductions.

Federal income tax = 15% of 2396 = 0.15*2396      =$359.4

Social security tax  = 6.2% of 2396=0.062*2396    =$148.552

Medicare tax           = 1.45% of 2396= 0.0145*2396=$34.742

health insurance premium                                         =$95          

Total deductions                                                        = $637.694

To calculate Janice net pay we have to subtract deductions from monthly salary that is 2396-637.694 = $1758.306

Hence net pay of Janice is $1758.306 per month.