Answer:
Net pay of Simon' s is $867.36 .
Option (C) is correct .
Step-by-step explanation:
As given
The gross pay on Simon's paycheck is $1220.86.
In addition to his FICA tax, he has $178.90 withheld for federal income tax, $62.21 withheld for state income tax, and $19 deducted for health insurance.
The social security tax is 6.2% of gross pay and the medicare tax is 1.45% of gross pay .
6.2 % is written in the decimal form .
[tex]= \frac{6.2}{100}[/tex]
= 0.062
Social security tax = 0.062 × Gross pay
= 0.062 × 1220.86
= $75.69 (Approx)
1.45% is written in the decimal form .
[tex]= \frac{1.45}{100}[/tex]
= 0.0145
Medicure tax = 0.0145 × Gross pay
= 0.0145 × 1220
= $ 17.7 (Approx)
Net pay = Gross pay - Federal income tax - State tax - Health tax - Social security tax - Medicure tax
Putting all the values in the above
= 1220.86 - 178.90 - 62.21 - 19 - 75.69 - 17.7
= 1220.86 - 353.5
= $ 867.36
Therefore the net pay of Simon' s is $867.36 .
Option (C) is correct .
