Final answer:
To find John's net pay, his gross pay of $600 is calculated by multiplying his hourly wage by the hours worked, then the total deductions of $114 are subtracted to determine that his net pay is $486.10.
Step-by-step explanation:
The student asks about calculating net pay after payroll deductions. To calculate John Smith's net pay who works for ABC Corp, we first need to find his gross pay by multiplying his hourly wage by the number of hours he works. John makes $15 per hour and works 40 hours, which equals $600 (40 hours x $15 per hour). The next step is to subtract the required payroll deductions from the gross pay: Social Security, Medicare, federal income tax, and state income tax. His net pay is calculated as follows:
- Gross Pay: $600
- Social Security: -$37.20
- Medicare: -$8.70
- Federal Income Tax: -$58
- State Income Tax: -$10
Net Pay = Gross Pay - (Social Security + Medicare + Federal Income Tax + State Income Tax)
Net Pay = $600 - ($37.20 + $8.70 + $58 + $10)
Net Pay = $600 - $114
Net Pay = $486
The correct answer to the multiple-choice question is therefore $486.10.