7. Bob Smith is a manager for Alway Corp. His earnings are subject to deductions for social security, Medicare, and FIT. Smith is $950 below the maximum for Social Security. What will his net pay for the week be if he earns $1,200? Smith is married, paid weekly, and claims three exemptions. Assume Social Security rate is 6.2% on $97,120 and Medicare is 1.45%.
| Amount | Hint | |
| Gross Pay | 1,200.00 | |
| Less: Social Security | 58.90 | =950*6.2% |
| Less: Medicare | 17.40 | =1200*1.45% |
| Less: FIT (Used wage bracket table for 2018 Married , weekly, three exemptions) | 81.00 | |
| Net Pay | $ 1,042.70 | |
| Note: Your answer will be different if different year tax table will be used, since not specified inquestion, I have used latest one. | ||
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