Mr. Ortega earns a monthly salary of $8,000. Based on Mr. Ortega’s Form W-4, the tax tables require withholding $900 per month for income taxes. Mr. Ortega has authorized his employer to deduct $380 per month for medical insurance and $30 per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of 6%, a Medicare tax rate of 1.5%, and an Unemployment tax rate of 6% on the first $7,000 of income. Based on this information, Mr. Ortega’s net pay for January 31, Year 1 is:
Mr. Ortega earns a monthly salary of $8,000. Based on Mr. Ortega’s Form W-4, the tax tables require withholding $900 per month for income taxes. Mr. Ortega has authorized his employer to deduct $380 per month for medical insurance and $30 per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of 6%, a Medicare tax rate of 1.5%, and an Unemployment tax rate of 6% on the first $7,000 of income. Based on this information, Mr. Ortega’s net pay for January 31, Year 1 is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr. Ortega earns a monthly salary of $8,000. Based on Mr. Ortega’s Form W-4, the tax tables require withholding $900 per month for income taxes. Mr. Ortega has authorized his employer to deduct $380 per month for medical insurance and $30 per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of 6%, a Medicare tax rate of 1.5%, and an
Transcribed Image Text:$6,090.
$5,670.
$5,610.
$6,990.
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