Sue's 2016 net (take-home) pay was $23,205. Her only payroll deductions were for payroll taxes and federal income tax. Federal income tax withholdings totaled $4,500. What was the amount of her gross wages for the year?

Question

Quizplus · Accepted Answer

Sue's net pay is her gross wages minus payroll deductions. Adding back the federal income tax withholdings of $4,500 to her net pay of $23,205 gives a gross wage of $27,705. Since payroll taxes are also deducted, the gross wages must be higher than $27,705. The closest option is $30,000.

Sue's 2016 Net (Take-Home) Pay Was $23,205