11
InstructionMultiple Choice

Gross Pay vs. Net Pay

Question 11 • (Kapuschinsky)WCA 3424 Consumer Applications 1st nine weeks 26-27

Chuck has a gross pay of $815.70. By how much will Chuck’s gross pay be reduced if he has the following items withheld?federal tax of $56Social Security tax that is 6.2% of his gross payMedicare tax that is 1.45% of his gross paystate tax that is 19% of his federal tax

Answer
A
$73.04
B
$129.04
C
$235.51
D
$273.38

Explanation

Social Security tax is 6.2% of $815.70, or about $50.57, and Medicare tax is 1.45% of $815.70, or about $11.83. State tax is 19% of the $56 federal tax, which is $10.64. Adding these taxes and the federal tax gives $56 + $50.57 + $11.83 + $10.64 = $129.04, so the correct choice is $129.04.

AI-written and checked against the verified answer.

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