Trey Morgan is an employee who is paid monthly. For the month of January of the current year, he earned a total of $4,538. The FICA tax for social security is 6.2% of the first $127,200 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer. The amount of federal income tax withheld from his earnings was $680.70. His net pay for the month is:

Question

Natalia Maynard

Business

5 June, 08:01

Trey Morgan is an employee who is paid monthly. For the month of January of the current year, he earned a total of $4,538. The FICA tax for social security is 6.2% of the first $127,200 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer. The amount of federal income tax withheld from his earnings was $680.70. His net pay for the month is:

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Answers (1)

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Angeline Drake · Answer 1

Net pay = $3,857.30

Explanation:

given data

total = $4,538

FICA tax = 6.2%

first earned = $127,200

Medicare = 1.45%

federal income tax withheld = $680.70

solution

we know that net pay is express as

Net pay = Gross earnings - Federal tax withheld ... 1

put here value in equation 1 we get

Net pay = $4,538 - $680.70

Net pay = $3,857.30