During the first week of January, Sam Jones earned $200. Assume that FICA taxes are 7.65 percent of wages up to $50,000, state unemployment tax is 5.0 percent of wages up to $13,000, and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Sam has voluntary withholdings of $10 (in addition to taxes) and that federal and state income tax withholdings are $18 and $6, respectively.
Using the information above, what amount is the check, net of all deductions, that Sam received for the week's pay?

Question

Quizplus · Accepted Answer

The correct answer is A. $150.70.Explanation:Gross pay: $200FICA taxes: $200 x 7.65% = $15.30State unemployment tax: $200 x 5.0% = $10.00Federal unemployment tax: $200 x 0.8% = $1.60Total taxes: $15.30 + $10.00 + $1.60 = $26.90Voluntary withholdings: $10.00Federal income tax withholdings: $18.00State income tax withholdings: $6.00Total deductions: $26.90 + $10.00 + $18.00 + $6.00 = $60.90Net pay: $200 - $60.90 = $150.70

During the First Week of January, Sam Jones Earned $200