Question

Janice works for a salary of $2,396 per month. She has federal income tax withheld at the rate of 15 percent, Social Security tax at the rate of 6.2 percent, Medicare tax at the rate of 1.45 percent, and health insurance premiums of $95 per month. Janice’s net pay is

Answer 1

$1,758.31

Explanation:

Monthly salary of Janice = $2,396

Federal income tax withholding = 15% × 2,396

= 0.15 × 2396

= $359.40

Social security tax = 6.2% of 2,396

= 0.062 × 2,396

= $148.55

Medicare tax = 1.45% of 2,396

= 0.0145 × 2,396

= $34.74

Health insurance premiums = $95.00

Total withholding = 359.40 + 148.55 + 34.74 + 95

= $637.69

Janice's net pay = 2396 - 637.69 = $1,758.31

Answer 2

Her pay will be ....

... $2396 × (100% -15% -6.2% -1.45%) -$95

... = $2396 × 0.7735 - 95

... = $1758.31