Question

Ronnie earns $85,500 per year. The deductions from his weekly paycheck are HT of $275.22, SIT of $70.75, medical insurance of $110.00, Social Security, and Medicare. What is Ronnie's net pay for a week?

A) $1,364.03
B) $1,200.00
C) $1,750.97
D) $1,084.03
E) $1,500.00

Answer 1

To calculate Ronnie's net pay for a week, subtract the total deductions from his gross pay. The deductions include Social Security, Medicare, and federal and state taxes, which are calculated based on percentages of his annual income. The net pay is then calculated by subtracting the total deductions from the gross pay.

Step-by-step explanation:

To calculate Ronnie's net pay for a week, we need to subtract the deductions from his gross pay. Firstly, let's calculate the total deductions and taxes. The Social Security deduction is 6.2% of the gross annual income, which is $85,500.

So, the Social Security deduction is 0.062 * 85500 = $5,301. The Medicare deduction is 1.45% of the gross annual income, which is $85,500. Therefore, the Medicare deduction is 0.0145 * 85500 = $1,238.75. Lastly, we need to calculate the federal and state taxes deduction

which is 15% of the gross annual income:
0.15 * 85500 = $12,825.

Next, we calculate the total weekly deductions by dividing the annual deductions by 52:
Total deductions = (5301 + 1238.75 + 12825) / 52 = $520.12.

Finally, subtract the total deductions from the gross pay:
Net pay = Gross pay - Total deductions = $85500 - $520.12 = $84979.88.