Gross Pay vs. Net Pay

Question 1

Bonnie claims single with 2 federal withholding allowances, and contributes state tax of 20% of her federal tax. Below is a copy of Bonnie's biweekly statement of earnings. Bonnie knows that her gross earnings and federal tax are correct, but she thinks that her net pay is not correct. EarningsDeductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH.NET PAY4/15$760.00 $50.00 $47.12 $110.20 $10.00$542.68Using the fact that Social Security is 6.2% and Medicare is 1.45% of gross pay, explain why the given net pay is not correct. Determine how the error can be corrected, and what the net pay should be.

Revolt · Accepted Answer

The error is that Medicare tax was listed as $110.20 instead of the correct amount of $11.02. Social Security is correct at $47.12, and state tax is correct at $10.00 (20% of $50.00). Medicare was overwithheld by $99.18, so the net pay should increase from $542.68 to $641.86.

Question 2

A statement of an employee's biweekly earnings is given below. Earnings Deductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH. NET PAY 8/18 $_____ $62.00 $45.06 $10.54 $12.40 $596.80 What is the employee's gross pay?

Revolt · Accepted Answer

$726.80

Question 3

Luis has a biweekly gross pay of $770 and claims 2 federal withholding allowances. Luis has all of the following deductions from his gross pay: federal tax from the following table Social Security tax that is 6.2% of his gross pay Medicare tax that is 1.45% of his gross pay state tax that is 19% of his federal tax Determine how Luis’ net pay will be affected if he increases his federal withholding allowances from 2 to 3.

Revolt · Accepted Answer

His net pay will increase by $22.61.

Question 4

The total amount of deductions from an employee’s gross pay is $97.45. If the gross pay is $423.70, what percent of their gross pay is being withheld?

Revolt · Accepted Answer

23%

Question 5

MaryLiz claims single having no exemptions. Her state tax deduction is 18% of her federal tax contribution. Calculate the amount of state tax MaryLiz owes if her gross pay for two weeks is $800. The following federal tax table is for biweekly earnings of a single person.

Revolt · Accepted Answer

$16.56

Question 6

Jasmine has a gross pay of $754.80. By how much will Jasmine’s gross pay be reduced if she has the following items withheld?federal tax of $31Social Security tax that is 6.2% of her gross payMedicare tax that is 1.45% of her gross paystate tax that is 18% of her federal tax

Revolt · Accepted Answer

$94.32

Question 7

Raquel has gross pay of $732 and federal tax withholdings of $62. Determine Raquel’s net pay if she has the additional items withheld:Social Security tax that is 6.2% of her gross payMedicare tax that is 1.45% of her gross paystate tax that is 21% of her federal tax

Revolt · Accepted Answer

$600.99

Question 8

Use the following federal tax table for biweekly gross earnings of a single person to help answer the question below. Molly has biweekly gross earnings of $839.52. By claiming 1 more withholding allowance, Molly would have $16 more in her take home pay. How many withholding allowances does Molly currently claim?

Revolt · Accepted Answer

3

Question 9

Martha earned a gross pay of $1,215.60 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social security tax deducted from Martha’s gross pay.

Revolt · Accepted Answer

$75.37

Question 10

The following federal tax table is for biweekly earnings of a single person. How will the federal tax affect a biweekly pay of $740 for a single person claiming 1 exemption?

Revolt · Accepted Answer

It decreases the biweekly pay by $65.

Gross Pay vs. Net Pay Answers

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