Quiz Help Save Exit Portia Grant is an employee who is paid

Quiz Help Save & Exit Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,588. The FICA tax for social security is 62% of the first $118,500 of employee earnings each calendar year and the FICA tax rate for Medicare is 1 45% of all earnings. The FUTA tax rate of 06% and the SUTA tax rate of 5.4% are applied to the first S7000 of an employee\'s pay. The amount of federal income tax withheld from her earnings was $1,424.97. Her net pay for the month is: (Round your intermediate calculations to two decimal places.) Multiple Choice $6,506.04 $5,14103 $6,07204 to search SAMSU

Solution

Net Pay = Gross pay - Federal Income Tax- FICA (Social Security Tax)-FICA(Medicare Tax)

Net pay in this case = $8588-$1424.97-($8588*6.2%)-($8588*1.45%)

= $7163.03-$532.46-$124.53

=$6506.04

Option 1 is correct.