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Frances Newberry is the payroll accountant for Pack-It Services of Jackson, Arizona. The employees of Pack-It Services are paid semimonthly. An employee, Glen Riley, comes to her on November 6 and requests a pay advance of $750, which he will pay back in equal parts on the November 15 and December 15 paychecks. Glen is married with eight withholding allowances and is paid $50,000 per year. He contributes 3 percent of his pay to a 401(k) and has $25 per paycheck deducted for a Section 125 plan.
Compute his net pay on his November 15 paycheck.

Respuesta :

Answer:

Francis net pay: 1,349.62 dollars

Explanation:

50,000 dollars per year

we divide over 24 payment per year: 2,083.33

we calculate the deductions

6.20% social security = 129.16

1.45% medicare =           30.21

3% 401(k) =                $  62.50

section 125 plan       $  25.00

advance repayment $ 375.00

750 / 2 = 375

taxable income: 2,083.33 - 62.5 - 25 = 1,995.83

Federal income tax: 1.6% $ 32.00

State Income tax: 4%       $ 79.83

Net pay: 1995.83 - 32 - 79.83 - 129.16 - 30.21 - 375 = 1,349.62