Nick Dent, an employee of Spottswood Company, has gross earnings for the month of October of $6,000. FICA taxes are 8% of gross earnings, federal income taxes amount to $952 for the month, state income taxes are 2% of gross earnings, and Nick authorizes voluntary deductions of $15 per month to the United Fund. What is the net pay for Nick Dent?

Question

Quizplus · Accepted Answer

First, we need to calculate the deductions:

FICA taxes: $6,000 x 8% = $480
State income taxes: $6,000 x 2% = $120
Voluntary deductions: $15

Total deductions: $480 + $120 + $15 + $952 = $1,567

Next, we subtract the total deductions from the gross earnings:

Net pay: $6,000 - $1,567 = $4,433

Therefore, the correct answer is B.

Nick Dent, an Employee of Spottswood Company, Has Gross Earnings