Question

Eric works for salary of $3,500 per month. He has federal income withheld at the rate of 15%, Social Security tax at the rate of 6.2%, Medicare tax at the rate of 1.45% and health insurance premiums of $48 per month. Erik also contributes to a savings plan. Each month, 2% of his gross pay is placed in the savings plan.

After Erik pays the taxes on his money what is Eric's net pay?
A. (1,448.45)
B. (1,799.05)
C. (2,589.25)
D. (2799.05)

Answer 1

c

Explanation:

Answer 2

C. 2,589.25

Explanation:

Salary=$3500

Less:

Federal income withheld

15% of $3500

=15/100×$3500

=$525

Social security tax of 6.2%

6.2% of $3500

=6.2/100 × $3500

=$217

Medicare tax of 1.45%

1.45% of $3500

1.45/100 × $3500

=$50.75

Health insurance premium=$48

Savings plan of 2%

2% of $3500

=2/100 × $3500

=$70

Total less:= $525 + $217 + $50.75 + $48 + $70

Eric's net pay =$3500 - $910.75

=$2,589.25