Question

Gary Dittman, an employee of Hopkins Company, has gross earnings for the month of October of $6,000. FICA taxes are 8% of gross earnings, federal income taxes amount to $952 for the month, state income taxes are 2% of gross earnings, and authorizes voluntary deductions of $15 per month to the United Way. What is the net pay for Gary? Group of answer choices $4,442 $4,433 $4,448 $4,452

Answer 1

Answer:

Option b ($4,433) is the appropriate choice.

Explanation:

Given:

Gross earnings,

= $6,000

Federal income taxes,

= $952

Now,

The net pay for Gary will be:

= $6000-(6000\times 10 \ percent-952-15)$

= $6000-(6000\times 0.1-952-15)$

= $4,433$ ($)