Question

Hiya has a gross pay of $926.50. By how much will Hiya's gross pay be reduced if she has the following deductions withheld from her paycheck?

Federal tax: $76.00
Social Security Tax 6.2%
Medicare 1.4%
State Tax 19% of Federal Tax
A. $281.40
B. $92.54
C. $221.32
D. $161.31

Answer 1

Hiya's gross pay will be reduced by $146.38.

Step-by-step explanation:

To calculate Hiya's total deductions, we need to determine the amount for each deduction and then add them up.

First, we'll calculate the Social Security tax deduction using the given rate of 6.2% of the gross pay. So, Social Security Tax = 6.2% of $926.50 = $57.41.

Next, we'll calculate the Medicare tax deduction using the given rate of 1.4% of the gross pay. So, Medicare Tax = 1.4% of $926.50 = $12.97.

Now, let's calculate the federal tax deduction. State tax is taken as 19% of the federal tax. Therefore, Federal Tax + State Tax = $76.00. So, State Tax = 19% x $76.00 = $14.44. Since State Tax is 19% of Federal Tax, we can calculate the Federal Tax as Federal Tax = $76.00 - $14.44 = $61.56.

Finally, we can calculate the total deductions by summing up the deductions we found. Total Deductions = Social Security Tax + Medicare Tax + Federal Tax + State Tax = $57.41 + $12.97 + $61.56 + $14.44 = $146.38.

Therefore, Hiya's gross pay will be reduced by $146.38.