Kenny Corsig, an employee of Fenwick Company, has gross earnings for the month of October of $3,000. FICA taxes are 7.65% of gross earnings, federal income taxes amount to $476 for the month, state income taxes are 2% of gross earnings, and voluntary deductions are $8 per month to the United Way. What is the net pay for Kenny?

Question

Quizplus · Accepted Answer

First, calculate FICA taxes: 
$3,000 x 7.65% = $229.50

Then, subtract the federal income taxes: 
$3,000 - $476 = $2,524

Next, calculate state income taxes: 
$3,000 x 2% = $60

Subtract voluntary deductions: 
$2,524 - $8 = $2,516

Finally, subtract FICA taxes and state income taxes: 
$2,516 - $229.50 - $60 = $2,227.50

Round down to nearest cent: $2,227

Kenny Corsig, an Employee of Fenwick Company, Has Gross Earnings