Question

Kenny corsig, an employee of fenwick company, has gross earnings for the month of october of $3,000. fica taxes are 7.65% of gross earnings, federal income taxes amount to $476 for the month, state income taxes are 2% of gross earnings, and authorizes voluntary deductions of $8 per month to the united way. what is the net pay for kenny (round up)?

Answer 1

gross earnings - deductions = net pay

gross earnings = 3000

deductions :
FICA : 7.65% of 3000 = 0.0765(3000) = 229.50
fed. inc. tax : 476
st. in. tax: 2% of 3000 = 0.02(3000) = 60
voluntary deductions : 8
total deductions : 229.50 + 476 + 60 + 8 = 773.50

gross earnings - deductions = net pay
3000 - 773.50 = net pay
2226.50 = net pay <===