Question

Bill is paid bi-weekly and has a gross pay of $1500 for each pay period. He pays Social Security at a rate of 6.2%, Medicare at a rate of 1.45%, and pays combined taxes of 16.2%. What will be his net paycheck be if those are the only deductions?

Answer 1

$1142.25

Step-by-step explanation:

Step 1 :

Gross pay per week =  $1500

Social security deducted = 6.2% = $93

Medicare deducted = 1.45% = $21.75

Deductions for combined taxes = 16.2% = $243

Hence total deductions made from the gross salary is 93+21.75+ 243 = $357.75

Step 2 :

We need to find his net pay checks if the above are the only deductions made.

This can be obtained by deducting the total deductions from the gross pay.

Net pay = 1500 - 357.75 = $1142.25