Question

Calculate the net pay. The balance before this weekly payroll is $90 below maximum as related to cumulative earnings in calculating Social Security. Assume a tax rate of 6.2% for Social Security on $142,800 and 1.45% for Medicare.

status = single

Gross= 900

calculate: FIT, social security, Medicare, and Net pay

Answer 1

To calculate the net pay, subtract the deductions and taxes from the gross pay. In this case, the net pay is $696.15.

Step-by-step explanation:

To calculate the net pay, we need to calculate the deductions and taxes first. The Social Security deduction is 6.2% of the gross annual income, Medicare is 1.45% of the gross annual income, and federal and state taxes are 15% of the gross annual income. Let's calculate these amounts:

• Social Security: $900 * 6.2% = $55.80
• Medicare: $900 * 1.45% = $13.05
• Federal and State Taxes: $900 * 15% = $135

To calculate the net pay, we subtract the deductions from the gross pay: Gross pay - Deductions = Net pay

Net pay = $900 - ($55.80 + $13.05 + $135) = $696.15

Therefore, the net pay is $696.15.

Answer 2

To calculate the net pay, Social Security (6.2%), Medicare (1.45%), and assumed federal income tax (FIT) at 15% are deducted from the gross pay of $900, resulting in a net pay of $696.15.

Step-by-step explanation:

To calculate the net pay, we will need to deduct the appropriate taxes and contributions from the gross pay of $900. Consider that the balance before this payroll is $90 below the Social Security maximum of $142,800, making the contribution for Social Security tax this week still applicable.

First, let's calculate the Social Security and Medicare contributions:

• Social Security: 6.2% of $900 = $55.80
• Medicare: 1.45% of $900 = $13.05

Next, the federal income tax (FIT) is assumed to be 15%, although this rate can vary based on actual income tax brackets and the individual's specific situation:

• Federal Income Tax (FIT): 15% of $900 = $135.00

Therefore, the net pay would be the gross pay minus all deductions:

• Net Pay = Gross Pay - Social Security - Medicare - FIT
• Net Pay = $900 - $55.80 - $13.05 - $135.00
• Net Pay = $696.15

So, the net pay after deducting Social Security, Medicare, and federal income tax is $696.15.