Social Security Tax is 6.2%; Medicare Tax is 1.45% and federal and state unemployment compensation taxes total 5.4% (both added together). The federal income tax for the month is $250 and the state income taxes for the month is $40. If employee George Glass earned $2,500 for the current month and he has not reached any maximums for taxes, what is George's total net pay for the month?

Question

Quizplus · Accepted Answer

Social Security Tax = 6.2% of $2,500 = $155Medicare Tax = 1.45% of $2,500 = $36.25Federal Income Tax = $250State Income Tax = $40Total deductions = $155 + $36.25 + $250 + $40 = $481.25Net Pay = Gross Pay - Total Deductions = $2,500 - $481.25 = $2,018.75

Social Security Tax Is 6