Question

Chad Palmer's gross weekly salary as a logger is $630. He pays 6.2% Social Security tax, 1.45% Medicare tax, and $14.20 for health insurance. What is Chad's monthly net pay?

Answer 1

Chad Palmer's monthly net pay is calculated by deducting Social Security tax, Medicare tax, and the cost of health insurance from his gross weekly salary and then multiplying the net weekly salary by 4 to determine the monthly amount.

Step-by-step explanation:

The question asks to calculate Chad Palmer's monthly net pay as a logger, considering his gross weekly salary and various deductions for taxes and health insurance.

Step-by-step Calculation:

1. Calculate the total tax deductions per week: 6.2% of the gross salary for Social Security, 1.45% for Medicare.
2. Subtract the weekly tax deductions and the health insurance payment from the gross salary to find the weekly net pay.
3. Multiply the weekly net pay by 4 (assuming 4 weeks in a month) to calculate the monthly net pay.

First, we calculate the Social Security tax: $630 × 6.2/100 = $39.06

Next, we calculate the Medicare tax: $630 × 1.45/100 = $9.14

Then we account for the health insurance cost: $14.20

Now, we subtract all deductions from the gross salary to find the weekly net salary:

Weekly Net Salary = $630 - $39.06 - $9.14 - $14.20 = $567.60

Lastly, multiply the weekly net salary by 4 to estimate the monthly net pay:

Monthly Net Pay = $567.60 × 4 = $2270.40