Question

Bill is paid bi-weekly and has a gross pay of $1500 for each pay period. He pays Social Security at a rate of 6.2%, Medicare at a rate of 1.45%, and pays combined taxes of 16.2%. What will be his net paycheck be if those are the only deductions?

Group of answer choices

$1142.25

$1360.95

$1210.15

$139.05

Answer 1

Answer: A) $1142.25

Step-by-step explanation:

Important Rule: Gross pay - Deduction

• Gross pay = 1500

• SS Tax = 6.2% converts --> .062

• Medicare = 1.45% converts --> .0145

• Income = 16.2% converts --> .162

NOW MULTIPLY

(1500)(0.62) = 93

(1500)(.0145) = 21.75

(1500)(.162) = 243

ADD ALL OF THESE TOGETHER

243 + 21.75 + 93 = 357.75 [Total Deduction is 357.75]

Remember that Gross Pay minus Deduction equals our Answer!

1500 - 357.75 = $1142.25

Hope I helped you understand!

Answer 2

$1,142.25

Explanation:

Gross = $1500

Deductions = 6.2% + 1.45% + 16.2% = 23.85%

100% - 23.85% = 76.15%

100% = 1500

76.15$ = x

By cross multiplication

100x = 1500 * 76.15

x = $1,142.25