Question

Juanita receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that social security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay, and state tax is 19% of federal tax, determine if Juanita's net pay is correct. Earnings deductions week ended regular fed. soc. med state with. with. care. with. net pay 11/17 $1,020.00 $107.00 $63.24 $14.79 $20.33 $814.64

Choose the true statement below.
Options:
Option 1: The net pay is correct.
Option 2: The social security tax is not correct.
Option 3: The Medicare tax is not correct.
Option 4: The state tax is not correct.

Answer 1

After verifying each deduction against Juanita's gross pay, the calculations for Social Security, Medicare, and state tax are all accurate, resulting in a correct net pay of $814.64.

Step-by-step explanation:

To determine if Juanita's net pay is correct, we need to calculate each deduction from her gross pay and compare them with the provided figures. The Social Security tax should be 6.2% of her gross pay, the Medicare tax should be 1.45%, and the state tax should be 19% of her federal tax. Let's verify each one:Social Security tax = 6.2% of $1,020.00 = $63.24 (matches the provided figure)Medicare tax = 1.45% of $1,020.00 = $14.79 (matches the provided figure)State tax = 19% of federal tax = 19% of $107.00 = $20.33 (matches the provided figure)With all the deductions correct, to confirm the net pay, we subtract these from the gross pay: $1,020.00 - $107.00 (federal tax) - $63.24 (Social Security tax) - $14.79 (Medicare tax) - $20.33 (state tax) = $814.64, which is Juanita's reported net pay. Therefore, Juanita's net pay calculation is indeed correct.ConclusionThe provided net pay figure is correct as all the individual tax calculations match the deductions taken from Juanita's gross pay.