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How Are Income Taxes and FICA Taxes Applied to Grossed-Up

Question 20

Multiple Choice

How are income taxes and FICA taxes applied to grossed-up pay? (You may select more than one answer. )


A) Subtract the sum of the income tax rate and FICA tax rate from 100 percent.
B) Compute the sum of the income tax and FICA tax rates.
C) Divide the net pay by the net tax rate.
D) Multiply the gross pay by the sum of the income tax and FICA tax rates.

Correct Answer:

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