Jamie recently started working as

manager at a company. He will be paid

an annual salary of $42,600 and will be

paid monthly. The company requires the

following deductions:

• Social Security (6.2%)

• Medicare (1.4%)

• State Income Tax (3%)

• Federal Income Tax (13%)

• Medical and Dental Insurance ($260 per month)

• Retirement ($280 per month)

How much should his monthly net paycheck be?

a $2587.55

b. $2172.20

$2667 20

$2712.40

d

B

Step-by-step explanation:

From annual salary of 42,600, we have to subtract the following percentages:

Social Security:

0.062 * 42,600 = 2641.2

Medicare:

0.014 * 42,600 = 596.4

State Income Tax:

0.03 * 42,600 = 1278

Federal Income Tax:

0.13 * 42,600 = 5538

Total Deductions (from percentages) = 2641.2 + 596.4 + 1278 + 5538 = 10053.6

Now, remaining salary:

42,600 - 10053.6 = 32546.4 (annual)

Divided by 12 to get monthly:

32546.4 / 12 = 2712.2 (monthly)

Now, monthly deductions are:

260 + 280 = 540

Net Salary: 2712.2 - 540 = 2172.2