Question

Ali's gross pay is $800 per pay period. He has health insurance through his job. His total deductions per pay period, for taxes, FICA, and insurance, are $164. Ali determines that his net pay for the pay period is $636 plus his health insurance. Evaluate Ali's determination.

Answer 1

Given:
Ali's Gross pay : $800 per pay period
Ali's Deduction : $164 per pay period
Ali determines that his net pay for the pay period is $636 plus health insurance.

Ali should not include his benefits, health insurance. The net pay is derived by deducting the total deductions from his gross pay. The health insurance is not part of the net pay. Ali can only avail of his health insurance if he is sick or has to take a leave of absence due to sickness.