Jeff Jones earns $1,200 per week. He is married and claims four withholding allowances. The Social Security rate is 6.2% on $128,400, and Medicare is 1.45%. Each paycheck, his employer also deducts $42.50 for health insurance. What is his net pay? (Calculate FIT by percentage method.)

Question

Quizplus · Accepted Answer

FIT: $1,200 - ($79.80 × 4)= $880.80; 36.60 + .12 × ×($880.80 - $588)= 71.74; SS: $1,200 × .062 = $74.40; MED: $1,200 × .0145 = $17.40. Net Pay: $1,200 - ($71.74 + $74.40 + $17.40 + $42.50)= $993.96

Jeff Jones Earns $1,200 Per Week