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18 January, 13:56

John's gross pay for the week is $500. He pays 1.45 percent in Medicare tax, 6.2 percent in Social Security tax, 2 percent in state tax, 20 percent in federal income tax, and $20 as an insurance deduction. He does not have any voluntary deductions. What is John's net pay for the week?

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  1. 18 January, 13:59
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    Gross pay = 500

    deductions:

    medicare tax : 0.0145 (500) = 7.25

    S. S tax : 0.062 (500) = 31.00

    sales tax : 0.02 (500) = 10.00

    income tax : 0.2 (500) = 100

    insurance = 20

    total deductions : 7.25 + 31 + 10 + 100 + 20 = 168.25

    gross pay - deductions = net pay

    500 - 168.25 = net pay

    331.75 = net pay <===
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