An employee earned $4,600 in February working for an employer. The FICA tax rate

Question

An employee earned $4,600 in February working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. 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

$3,496.00

$3,604.10

$3,446.00

$2,634.10

Explanation / Answer

The amount of net pay for the employee for the month of February

Gross Pay = 4600

Less:

a)FICA tax rate for Social Security (6.2% of 4600)

b)FICA tax rate for Medicare (1.45% of 4600)

c)Contribution to retirement Plan (4600*10%)

d)federal income taxes withheld = 644

e) voluntary deductions for health insurance = 50

..

Net Pay = 3094.10 ....Option-a is the correct answer

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