Question

Matthew earned $1,000 this pay period. He will pay $94.12 in federal taxes. He does not have to pay state income tax. Social security tax is 6.2%, which is $62. Medicare is 1.45%, which is $14.50. Calculate Matthew's net pay with all mandatory taxes included.

Answer 1

Answer: 829.38

Step-by-step explanation:

Answer 2

First, let's calculate the amounts for social security and Medicare taxes based on the gross pay:
Social security tax: 6.2% of $1,000 = $62
Medicare tax: 1.45% of $1,000 = $14.50

Next, let's calculate the total taxes:
Total taxes = Federal taxes + Social security tax + Medicare tax
Total taxes = $94.12 + $62 + $14.50
Total taxes = $170.62

Finally, let's calculate the net pay:
Net pay = Gross pay - Total taxes
Net pay = $1,000 - $170.62
Net pay = $829.38

Therefore, Matthew's net pay, after deducting all mandatory taxes, is $829.38.