Question

Mike kohl, an employee of spotswood company, has gross earnings for the month of october of $8,000. fica taxes are 7.65% of gross earnings, federal income taxes amount to $1,270 for the month, state income taxes are 2% of gross earnings, and mike authorizes voluntary deductions of $20 per month to the united fund. what is the net pay for mike kohl?

Answer 1

Gross earnings for the month of October: $8,000.
Fica taxes ( 7.65 % ) : $8,000 * 0.0765 = $612.
Federal income taxes: $1,270.
State income taxes ( 2 % ): $8,000 * 0.02 = $160.
Voluntary deductions : $20.
$8,000 - ( $612 + $1,270 + $160 + $20 ) = $8,000 - $2,062 = $5,938.
Answer: The net pay for Mike Kohl is $5,938.