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Using the information following information, what amount is the check, net of al

ID: 2378681 • Letter: U

Question

Using the information following information, what amount is the check, net of all deductions, that Stanley received for the week's pay? During the first week of February, Stanley earned $300. Assume that FICA taxes are 7.65 percent of wages up to $106,800, state unemployment tax is 5.0 percent of wages up to $13,000, and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Stanley has voluntary withholdings of $10 (in addition to taxes) and that federal and state income tax withholdings are $18 and $6, respectively.

Explanation / Answer

300 original amout of Stanleys check before deductions.

minus:

Fica (300 * 7.65%) = 22.95

State Unemployment tax(300 * 5.00%) = 15.00

Federal Unemployment tax(300 * 0.8%) = 2.40

Voluntary withholdings = 10.00

Federal Income tax = 18.00

State Income tax = 6.00

Total deductions = 74.65

so 300(GROSS PAY) minus 74.65(DEDUCTIONS) = 225.35 (NET PAY) and amount of actual check.