Question

HELP PLEASE!! URGENT !! SHOW STEPS AS WELL PLEASE!

The gross pay on Simon's paycheck is $1220.86. in addition to his FICA tax, he has $178.90 withheld for federal income tax, $62.21 withheld for state income tax, and $19 deducted for health insurance. What is the net pay on Simon's paycheck?
(The social security tax is 6.2% of gross pay and the medicare tax is 1.45% of gross pay)

A. $960.75
B. $887.25
C. $867.36

Answer 1

So Simon has 1220.86.

We subtract the tax that in total would be,
178.80+62.21+19=260.11
1220.86 -260.11= 960.75

So the answer is A. 960.75

Answer 2

Net pay of Simon' s is $867.36 .

Option (C) is correct .

Explanation:

As given

The gross pay on Simon's paycheck is $1220.86.

In addition to his FICA tax, he has $178.90 withheld for federal income tax, $62.21 withheld for state income tax, and $19 deducted for health insurance.

The social security tax is 6.2% of gross pay and the medicare tax is 1.45% of gross pay .

6.2 % is written in the decimal form .

`= (6.2)/(100)`

= 0.062

Social security tax = 0.062 × Gross pay

= 0.062 × 1220.86

= $75.69 (Approx)

1.45% is written in the decimal form .

`= (1.45)/(100)`

= 0.0145

Medicure tax = 0.0145 × Gross pay

= 0.0145 × 1220

= $ 17.7 (Approx)

Net pay = Gross pay - Federal income tax - State tax - Health tax - Social security tax - Medicure tax

Putting all the values in the above

= 1220.86 - 178.90 - 62.21 - 19 - 75.69 - 17.7

= 1220.86 - 353.5

= $ 867.36

Therefore the net pay of Simon' s is $867.36 .

Option (C) is correct .