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 37.20; Medicare 58; and State income tax $10. What is John's net pay?Multiple choice question.
Solution
To calculate John's net pay, you need to follow these steps:
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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 600.
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Calculate the total deductions: Add up all the deductions. In this case, it would be 8.70 (Medicare) + 10 (State income tax) = $114.9.
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Subtract the total deductions from the gross pay to get the net pay: 114.9 (total deductions) = $485.1.
So, John's net pay is $485.1.
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