An employee has gross earnings of $1,800 with withholdings of 6.2% FICA-OASDI, 1.45% FICA-Medicare, $50 for federal income tax and $30 for state income tax. How much is the net pay? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest whole dollar.)
A) $1,612
B) $1,632
C) $1,582
D) $1,662

Question

Quizplus · Accepted Answer

To calculate net pay, subtract all withholdings from gross earnings:  FICA-OASDI: $1,800 * 6.2% = $111.60  FICA-Medicare: $1,800 * 1.45% = $26.10  Federal income tax: $50  State income tax: $30  Total withholdings: $111.60 + $26.10 + $50 + $30 = $217.70  Net pay: $1,800 - $217.70 = $1,582.30, rounded to $1,582.

An Employee Has Gross Earnings of $1,800 with Withholdings of 6.2