Question

Marsha Mellow’s weekly gross earnings for the week ended May 23 were $1,250, and her federal income tax withholding was $201.65. Assuming that the social security rate is 6% and Medicare is 1.5% of all earnings, what is Mellow’s net pay? If required, round your answer to two decimal places.

Answer 1

$954.60

Step-by-step explanation:

Gross Pay: Gross income for an individual, also known as gross pay, is the individual's total pay from his employer before taxes or other deductions.

Net Pay: Gross income for an individual, also known as gross pay, is the individual's total pay from his employer after taxes or other deductions.

Particulars Amount Amount

Gross Pay $1,250

Withholding deduction:

Income tax ($201.65)

Social Security (1,250*0.06 = $75)

Medicare tax (1,250*0.015 = $18.75)

Net pay $954.60