An medical facility employee's weekly gross salary is $1000. Her benefit deductions are $100 for a retirement account and $40 for a healthcare savings account. Social Security and Medicare withholdings total $56.50. Her federal income tax witholding is based on taxable earnings of ______.

Question

Quizplus · Accepted Answer

The taxable earnings for federal income tax would be her gross salary minus the pre-tax deductions for her retirement account and healthcare savings account, which are $100 and $40 respectively. Therefore, $1000 - $100 - $40 = $860. Social Security and Medicare withholdings are not deducted before calculating taxable earnings for federal income tax.

An Medical Facility Employee's Weekly Gross Salary Is $1000