Compute net earnings on March 3,when gross (taxable)pay equals $750.FICA-OASDI tax rates are 6.2%,FICA-Medicare rate is 1.45%,federal income tax $71.00,and state income tax $5.00.
A)$615.00
B)$610.00
C)$616.62
D)$672.12

Question

Quizplus · Accepted Answer

First, we need to calculate the FICA-OASDI tax and FICA-Medicare tax:
FICA-OASDI tax = 6.2% * $750 = $46.50
FICA-Medicare tax = 1.45% * $750 = $10.88

Next, we need to subtract the federal and state income taxes:
Federal income tax = $71.00
State income tax = $5.00

So, the total deductions are:
$46.50 (FICA-OASDI) + $10.88 (FICA-Medicare) + $71.00 (federal income tax) + $5.00 (state income tax) = $133.38

Now, we can calculate the net earnings:
$750 (gross pay) - $133.38 (total deductions) = $616.62

Therefore, the answer is C) $616.62.

Compute Net Earnings on March 3,when Gross (Taxable)pay Equals $750