Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from his earnings was $1,375.17. His net pay for the month is:

Question

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To calculate Phil Phoenix's net pay for the month, we need to subtract all the deductions from his gross pay. The deductions include FICA taxes for social security and Medicare, federal income tax, and, if applicable, FUTA and SUTA taxes. However, FUTA and SUTA are employer-paid taxes, not deducted from an employee's earnings, so they are not considered in the net pay calculation.1. Calculate FICA Social Security Tax: $8,288 * 6.2% = $513.862. Calculate FICA Medicare Tax: $8,288 * 1.45% = $120.183. Federal Income Tax Withheld: $1,375.17Total deductions = $513.86 + $120.18 + $1,375.17 = $2,009.21Net Pay = Gross Pay - Total Deductions = $8,288 - $2,009.21 = $6,278.79

Phil Phoenix Is Paid Monthly