In December 2010,Bob Cratchit worked for Scrooge & Marley and earned $1,000.Federal income tax withholding is 10%.The FICA rate is 6.2% and the Medicare tax is 1.45%.What is Bob's net pay?
A)$1,000
B)$823.50
C)$900
D)$923.50

Question

Quizplus · Accepted Answer

Bob's gross pay is $1,000. Federal income tax withholding is 10%, so he pays $100 in federal income tax. The FICA rate is 6.2%, so he pays $62 in FICA tax. The Medicare tax is 1.45%, so he pays $14.50 in Medicare tax. His total deductions are $176.50, so his net pay is $823.50.

In December 2010,Bob Cratchit Worked for Scrooge & Marley and Earned