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23 October, 11:30

Mike Kohl, an employee of Spotswood Company, had gross earnings for the month of October of $8,000. FICA taxes were 7.65% of gross earnings, federal income taxes amounted to $1,270 for the month, state income taxes were 2% of gross earnings, and Mike authorized voluntary deductions of $20 per month to the United Fund. What is the net pay for Mike Kohl?

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  1. 23 October, 11:49
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    net pay is $5938

    Explanation:

    Given data

    gross earnings = $8000

    FICA taxes = 7.65% of gross earnings

    federal income taxes = $1,270 monthly

    state income taxes = 2% of gross earnings

    voluntary deductions = $20 per month

    to find out

    net pay for Mike Kohl

    solution

    we know we have gross earning is $8000

    and here

    FICA taxes = 7.65% of gross earnings = 7.68 % * 8000 = $612

    and

    state income tax = 2% gross earnings = 2% * 8000 = $160

    so that

    net pay will be

    net pay = gross earnings - FICA taxes - state income tax - federal income taxes - voluntary deductions

    put here all value we get

    net pay = 8000 - 612 - 160 - 1270 - 20

    so net pay is $5938
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