Question 2 • SHS Alt Personal Finance - 2021
Social Security tax is 6.2% of $1,020, which is $63.24, and Medicare tax is 1.45% of $1,020, which rounds to $14.79. State tax is 19% of the $107 federal tax, or $20.33. The deductions total $205.36, so net pay is $1,020.00 − $205.36 = $814.64. Therefore, the statement “The net pay is correct” is true.
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