Question

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?

Answer 1

net pay is $5938

Step-by-step 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