Thomas Longbow is the only employee of Presido,Inc.During the first week of January,Longbow earned $1,600 and had federal and state income tax withholdings of $80 and $30,respectively.FICA taxes are 7.65% on earnings up to $127,200.State and federal unemployment taxes for the period are $100 and $16,respectively. What would be the amount of Longbow's payroll check for the first week of January?
A)$1,367.60
B)$1,483.60
C)$1,257.60
D)$1,251.60

Question

Quizplus · Accepted Answer

Net pay = Gross earnings − Withheld income taxes payable − FICA payable − Voluntary deductions
= $1,600 − [($1,600 × 0.0765)+ ($80 + $30)] − $0 = $1,367.60.

Thomas Longbow Is the Only Employee of Presido,Inc