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John Smith works 40 hours for ABC Corp. for $15 per hour. Required payroll deductions are: Social Security $37.20; Medicare $8.70; Federal Income tax $58; and State income tax $10. What is John's net pay?Multiple choice question.

Question

John Smith works 40 hours for ABC Corp. for 15perhour.Requiredpayrolldeductionsare:SocialSecurity15 per hour. Required payroll deductions are: Social Security 37.20; Medicare 8.70;FederalIncometax8.70; Federal Income tax 58; and State income tax $10. What is John's net pay?Multiple choice question.

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Solution

To calculate John's net pay, you need to follow these steps:

  1. Calculate his gross pay: This is done by multiplying his hourly rate by the number of hours he worked. In this case, it would be 15/hour40hours=15/hour * 40 hours = 600.

  2. Calculate the total deductions: Add up all the deductions. In this case, it would be 37.20(SocialSecurity)+37.20 (Social Security) + 8.70 (Medicare) + 58(FederalIncometax)+58 (Federal Income tax) + 10 (State income tax) = $114.9.

  3. Subtract the total deductions from the gross pay to get the net pay: 600(grosspay)600 (gross pay) - 114.9 (total deductions) = $485.1.

So, John's net pay is $485.1.

This problem has been solved

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