Question

The following totals for the month of October were taken from the payroll register of the Tobias Company:

Salaries [all subject to social security and medicare taxes] $14,000
Salaries [included above] subject to unemployment taxes 11,000
Federal income taxes withheld 3,500
State income taxes withheld 1,100
Medicare tax rate 1.45%
Social security tax rate 6.20%
Federal unemployment tax rate .60%
State unemployment tax rate 5.40%

What is the gross and net pay?

Answer 1

Gross pay = $14,000

Net pay = $8,329

Step-by-step explanation:

Particular Amount

Salary $14,000

Gross pay $14,000

Less: Federal income tax $3,500

Less: State income tax $1,100

Less: Social security tax $868

$14,000 x 6.20%

Less: Medicare tax $203

$14,000 x 1.45%

Net pay $8,329