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24 September, 02:12

An employee has gross earnings of $1,200 with withholdings of 6.2% FICA-OASDI, 1.45% FICA-Medicare, $50 for federal income tax and $10 for state income tax. How much is the net pay?

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  1. 24 September, 05:06
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    The net pay is $1048.20

    Explanation:

    Net pay : The net pay is come when all taxed and deductions is subtracted from the gross earnings

    For computing the net pay, we use the following equation which is shown below:

    = Gross earnings - FICA OASDI - FICA medicare - federal income tax - state income tax

    where,

    Gross earnings is $1,200

    FICA OASDI = 6.2% of $1,200 = $74.4

    FICA medicare = 1.45% of $1,200 = $17.4

    Federal income tax = $50

    State income tax = $10

    Now, put these values to the above equation

    So, the value would be:

    = $1,200 - $74.4 - $17.4 - $50 - $10

    = $1048.20

    Hence, the net pay is $1048.20
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