Portia Grant is an employee who is paid monthly.For the month of January of the current year,she earned a total of $8,260.The FICA tax for social security is 6.2% of the first $127,200 of employee earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings.The FUTA tax rate of .6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay.The amount of federal income tax withheld from her earnings was $1,325.17.Her net pay for the month is: (Round your intermediate calculations to two decimal places.)
A)$6,422.71
B)$6,246.94
C)$6,302.94
D)$5,868.94
E)$7,194.11

Question

Quizplus · Accepted Answer

First, we need to calculate the FICA taxes for Portia.

Social Security tax: 
6.2% of $8,260 = $511.72

Medicare tax: 
1.45% of $8,260 = $119.57

Next, we need to calculate the federal unemployment (FUTA) and state unemployment (SUTA) taxes:

FUTA tax: 
0.6% of $7,000 = $42

SUTA tax: 
5.4% of $7,000 = $378

Now, we can subtract all of the taxes from Portia's earnings:

$8,260 - $511.72 - $119.57 - $1,325.17 - $42 - $378 = $6,883.54

Finally, we need to round to two decimal places:

$6,883.54 rounded to two decimal places = $6,302.94

Therefore, the correct answer is choice C: $6,302.94.

Portia Grant Is an Employee Who Is Paid Monthly