Final answer:
Jason Grant's net pay for the month ended January 31, after deductions for federal income tax, FICA taxes, and union dues, is $2,070.50.
Step-by-step explanation:
Calculation of Jason Grant's Net Pay
To calculate Jason Grant's net pay for the month, we need to take into account his gross pay, federal income tax, FICA taxes, and union dues. His annual salary is $36,000, so his monthly gross pay is
$3,000 ($36,000 divided by 12 months).
Federal income tax at 20% of his gross pay will be $600 (20% of $3,000). FICA taxes include Social Security tax at 6.2% and Medicare tax at 1.45%. These taxes amount to $186 (6.2% of $3,000) for Social Security and $43.50 (1.45% of $3,000) for Medicare. Adding these together gives us a total FICA tax of $229.50.
After deducting the federal income tax and FICA taxes from the gross pay, we also need to subtract union dues, which are $100 per month. Therefore, the net pay calculation will be:
- Gross Pay: $3,000
- Minus Federal Income Tax: -$600
- Minus FICA Taxes: -$229.50
- Minus Union Dues: -$100
This leaves us with a net pay of $3,000 - $600 - $229.50 - $100 = $2,070.50.