Question

1. Kane earns an annual salary of $42,500.

He is paid twice a month with paychecks being

of equal amounts. If Medicare taxes

represent 1% of his income, then how much

will Kane bring home after Medicare taxes?

Answer 1

$1753.13

Explanation:

Kane's Annual Salary = $42,500

Gross Pay = $42,500

Net Pay = Gross Pay - 1% of Gross Pay

=42500 - (0.01 X 42500)

=$42,075

Since he is paid twice a month with paychecks being of equal amounts.

Number of Payments in a Year =12 X 2= 24

Therefore, Kane's Take Home pay after Medicare taxes

`= \$42075 / 24\\=\$1753.13$ (to the nearest cent)`