Question

Rick O'Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of July, his federal income taxes withheld are $180, state income taxes withheld are $37, social security tax is 6.2%, Medicare tax is 1.45%, State Unemployment Tax is 4%, and Federal Unemployment tax is 0.6%. What is Rick's net pay for July?

Answer 1

Answer:

  $1976.25

Step-by-step explanation:

Rick's monthly pay is $30,000/12 = $2500.

His total deductions are ...

  180 + 37 + (6.2% +1.45% +4% +0.6%)(2500) = 217 +12.25%(2500)

  = 217 +306.25 = 523.25

Rick's net pay is the difference ...

  $2500 -523.25 = $1976.25 . . . . net pay for July