2
InstructionMultiple Choice

Gross Pay vs. Net Pay

Question 2 • (Kapuschinsky)WCA 3424 Consumer Applications 1st nine weeks 26-27

Lauren has gross pay of $765 and federal tax withholdings of $68. Determine Lauren's net pay if she has the additional items withheld: Social Security tax that is 6.2% of her gross pay Medicare tax that is 1.45% of her gross pay State tax that is 22% of her federal tax

Answer
A
$691.52
B
$666.21
C
$636.98
D
$623.52

Explanation

Social Security withholding is 6.2% of $765, or $47.43, and Medicare withholding is 1.45% of $765, or about $11.09. State tax is 22% of the $68 federal withholding, which is $14.96. Subtract all withholdings from gross pay: $765 − $68 − $47.43 − $11.09 − $14.96 = $623.52, so the best answer is $623.52.

AI-written and checked against the verified answer.

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