Kathy Jenkins earns $75,000 per year.What is her net pay for the month ended January 31,if FICA tax rates are: 6.2% for OASDI and 1.45% for Medicare;federal income tax is 20%;and union dues are $100 per month?
A)$4,100
B)$4,421.87
C)$4,326
D)$4,293

Question

Quizplus · Accepted Answer

First, we need to calculate the total amount of taxes Kathy needs to pay:
- OASDI tax: $75,000 x 6.2% = $4,650
- Medicare tax: $75,000 x 1.45% = $1,087.50
- Federal income tax: $75,000 x 20% = $15,000

Total taxes = $4,650 + $1,087.50 + $15,000 = $20,737.50

Next, we need to calculate her monthly net pay:
- Gross pay: $75,000 / 12 = $6,250
- Union dues: $100

Gross pay - Union dues - Total taxes = Net pay
$6,250 - $100 - $20,737.50 = $4,412.50

Therefore, Kathy's net pay for the month ended January 31 is $4,421.87, which is the closest to option B.

Kathy Jenkins Earns $75,000 Per Year