Mary Ehrat an employee of Eddington Company has gross earnings for the month of October of $8000. FICA taxes are 7.65% of gross earnings federal income taxes amount to $1270 for the month state income taxes are 2% of gross earnings and Mary authorizes voluntary deductions of $20 per month to the United Fund. What is the net pay for Mary Ehrat?

Question

Quizplus · Accepted Answer

First, we need to calculate the deductions:

FICA taxes: 7.65% of $8000 = $612
Federal Income taxes: $1270
State Income taxes: 2% of $8000 = $160
Voluntary deduction: $20

Next, we add up these deductions:

$612 + $1270 + $160 + $20 = $2062

Finally, we subtract the total deductions from the gross earnings to get the net pay:

$8000 - $2062 = $5938

Therefore, the answer is B.

Mary Ehrat an Employee of Eddington Company Has Gross Earnings