Rick O'Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of July, his federal income taxes withheld are $180, state income taxes withheld are $37, social security tax is 6.2%, Medicare tax is 1.45%, State Unemployment Tax is 4%, and Federal Unemployment tax is 0.6%. What is Rick's net pay for July?
A)$2,500.00
B)$2,091.75
C)$2,308.75
D)$2,283.00

Question

Quizplus · Accepted Answer

First, let's calculate Rick's gross pay for July:

$30,000 / 12 = $2,500 gross pay per month

Next, let's calculate the various taxes:

Social Security tax = 6.2% of $2,500 = $155.00
Medicare tax = 1.45% of $2,500 = $36.25
State Unemployment Tax = 4% of $2,500 = $100.00
Federal Unemployment Tax = 0.6% of $2,500 = $15.00
Federal Income Tax = $180.00
State Income Tax = $37.00

Now let's subtract all the taxes from the gross pay to get net pay:

$2,500 - $155.00 - $36.25 - $100.00 - $15.00 - $180.00 - $37.00 = $2,091.75

Therefore, the answer is B.

Rick O'Shea, the Only Employee of Hunter Furniture Company, Makes