Question

Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $186 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $154 and contributes $77 to a retirement plan each month. What is the amount of net pay for the employee for the month of January

Answer 1

Answer: $4,754.6‬0

Step-by-step explanation:

FUTA and SUTA are not paid by the employee so they do not apply.

The net pay therefore will be;

= Gross pay - FICA social security - FICA Medicare - Federal Income taxes - Health insurance -Retirement

= 5,600 - ( 5,600 * 6.2%) - (5,600 * 0.6%) - 186 - 154 - 77

= $4,754.6‬0