8
QuizMultiple Choice

Gross Pay vs. Net Pay

Question 8 • SHS Alt Personal Finance - 2021

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

Answer
A
$600.99
B
$610.54
C
$641.83
D
$662.99

Explanation

Social Security withholding is 0.062 × $732 = $45.38, and Medicare withholding is 0.0145 × $732 = $10.61. State tax is 0.21 × $62 = $13.02. Subtract all withholdings from gross pay: $732 − $62 − $45.38 − $10.61 − $13.02 = $600.99, so Raquel’s net pay is $600.99.

AI-written and checked against the verified answer.

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