Chloe receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 23% of federal tax, determine if Chloe's net pay is correct. EarningsDeductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH.NET PAY9/10$856.00 $80.00 $53.07 $12.41 $18.40$692.12Choose the true statement below.
B
The Social Security tax is not correct.C
The Medicare tax is not correct.D
The state tax is not correct.Social Security tax is $856 × 0.062 = $53.07, and Medicare tax is $856 × 0.0145 = $12.41, rounded to the nearest cent. State tax is $80 × 0.23 = $18.40. The deductions total $80 + $53.07 + $12.41 + $18.40 = $163.88, so net pay is $856 − $163.88 = $692.12. Therefore, the net pay is correct.
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