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19 March, 00:58

An employee earned $4,600 in February working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 earned during each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The employee has $644 in federal income taxes withheld and has voluntary deductions for health insurance of $50 and contributes 10% of gross pay to a retirement plan each month. The employer pays the $200 remainder of the health insurance premium and an equal amount of contribution to the retirement fund. What is the amount of net pay for the employee for the month of February?

$3,094.10

$2,634.10

$3,446.00

$3,604.10

$3,496.00

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Answers (1)
  1. 19 March, 03:54
    0
    Net Pay $3094.10 is the answer.

    Explanation:

    Gross pay $4600

    Less: Social Security (4600*6.2%) 285.20

    Less: FICA (4600*1.45%) 66.70

    Less: Federal tax withheld 644

    Less: contribution for health insurance 50

    Less: contribution for retirement plan (4600*10%) 460

    Net Pay $3094.10
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