Answer:
The net amount of salary paid for the period is $583,100
Explanation:
The computation of the net salary paid is shown below:
= Total Payroll - Social security taxes - medicare taxes - federal income taxes - union dues
where,
Total payroll is $800,000
Social security tax = (payroll - excess amount) × rate
= ($800,000 - $150,000) × 6.2%
= $40,300
The tax rate is 12.4 % which is contributed by employers and employees.
The half is borne by the employee and the other half is born by the employer
Medicare expense = Payroll × tax rate
= $800,000 × 1.45%
= $11,600
The other amounts would remain the same
Now put these values to the above formula
So, the value would equal to
= $800,000 - $40,300 - $11,600 - $150,000 - $15,000
= $583,100
