-Jeffrey Haas earns $4723.08 biweekly, is married, and claims 5 withholding allowances. Find his net earning for this pay period. FICA tax is 4.2% and Medicare tax is 1.45%.
A) $5070.96
B) $3841.50
C) $4108.35
D) $4456.23

Question

-Jeffrey Haas earns $4723.08 biweekly, is married, and claims 5 withholding allowances. Find his net earning for this pay period. FICA tax is 4.2% and Medicare tax is 1.45%.
A) $5070.96 
B) $3841.50 
C) $4108.35 
D) $4456.23

Quizplus · Accepted Answer

First, calculate the FICA and Medicare taxes: FICA tax = $4723.08 * 4.2% = $198.37, Medicare tax = $4723.08 * 1.45% = $68.43. Total taxes = $198.37 + $68.43 = $266.80. Net earnings = Gross earnings - Total taxes = $4723.08 - $266.80 = $4456.28. However, without knowing the exact amount withheld for federal income tax based on the number of allowances claimed, it's challenging to calculate the precise net earnings. The provided options do not account for federal income tax withholding, which significantly impacts net earnings. Given the information and options provided, none directly align with the calculated net earnings after only FICA and Medicare taxes. A reevaluation of the calculation or additional information regarding federal income tax withholding is necessary to accurately determine the correct choice.

-Jeffrey Haas Earns $4723