Question

Mr. Jones has an annual gross pay of $22,000. His state tax rate is 2% of his gross pay. He is required to pay Social Security at a rate of 6.2% and Medicare at a rate of 1.45%. His federal tax obligation if $67 each week for 52 weeks. What is his net pay for the year?

Question 2 options:

A. $16,393
B. $12,909
C. $5,607
D. $19,169

Answer 1

Option A

$16393

Explanation:

Deductions

Percentage deductions total will be 2%+6.2%+1.45%=9.65%

Deduction due to federal tax=52*67=$3484

Total deductions will be (9.65*22000/100)+(52*67)=2123+3484=$5607

Net salary= Gross salary- Deductions

Net salary= 22000-5607=$16393