Question

Phan earned gross wages of $487.12. Phan's deductions were: $49 in federal withholding taxes, 6.2% in social security taxes, 1.45% in Medicare taxes, $28.74 in health insurance, and $12 in union dues. Find Phan's net pay.

Answer 1

$360.12

Explanation:

Phan's net pay would be equal to the gross wage he receives minus the deductions:

Gross wage= $487.12

Federal withholding taxes= $49

Social security taxes= $487.12*6.2%= $30.2

Medicare taxes= $487.12*1.45%= $7.06

Health insurance= $28.74

Union dues= $12

Net pay= $487.12-$49-$30.2-$7.06-$28.74-$12

Net pay= $360.12

According to this, Phan's net pay is $360.12.