Question

Brad's gross pay for the month is $15,400. His deduction for federal income tax is based on a rate of 18%. He has no voluntary deductions. His year-to-date pay is under the limit for OASDI. What is Brad's net pay? (Assume a FICA—OASDI Tax of 6.2% and FICA—Medicare Tax of 1.45%. Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

Answer 1

$11,450

Step-by-step explanation:

Brad's gross pay = monthly gross income - federal income taxes - social security - medicare

• monthly gross income = $15,400
• federal income taxes = $15,400 x tax rate = $15,400 x 18% = $2,772
• social security payment = $15,400 x 6.2% = $954.80 ≈ $955
• medicare taxes = $15,400 x 1.45% = $223.30 ≈ $223

Brad's gross pay = $15,400 - $2,772 - $955 - $223 = $11,450