Question

An employee's net (or take-home) pay is determined by gross earnings minus amounts for income tax withholdings and the employee's

a. portion of FICA taxes and unemployment taxes.

b. and employer's portion of FICA taxes, and unemployment taxes.

c. portion of FICA taxes, unemployment taxes, and any voluntary deductions.

d. portion of FICA taxes and any voluntary deductions.

Answer 1

d. portion of FICA taxes and any voluntary deductions.

Step-by-step explanation:

The net pay or take-home salary is computed below:

= Gross earnings - income tax withholding - employee's portion of FICA taxes - voluntary deductions

The FICA tax comprises of medicare tax and the social security in which the contribution of both employer and employee is required.

So, after deducting the FICA taxes, deductions, and income tax withholding from the gross earning, the net income come