7
InstructionMultiple Choice

Gross Pay vs. Net Pay

Question 7 • (Kapuschinsky)WCA 3424 Consumer Applications 1st nine weeks 26-27

Marquis has a gross pay of $816. By how much will his gross pay be reduced if Marquis has the following items withheld?federal tax of $92Social Security tax that is 6.2% of his gross payMedicare tax that is 1.45% of his gross paystate tax that is 22% of his federal tax

Answer
A
$82.66
B
$129.13
C
$164.01
D
$174.66

Explanation

The total reduction is the sum of all four withholdings. Social Security is 0.062 × $816 = $50.592, Medicare is 0.0145 × $816 = $11.832, and state tax is 0.22 × $92 = $20.24. Adding these to the $92 federal tax gives $174.664, which rounds to $174.66. The correct choice is $174.66.

AI-written and checked against the verified answer.

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