Mr. Ortega earns a monthly salary of $9,200. Based on Mr. Ortega's Form W-4, the tax tables require withholding $1,455 per month for income taxes. Mr. Ortega has authorized his employer to deduct $935 per month for medical insurance and $54 per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of 6%, a Medicare tax rate of 1.50%, 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 $9,200. Based on Mr. Ortega's Form W-4, the tax tables require withholding $1,455 per month for income taxes. Mr. Ortega has authorized his employer to deduct $935 per month for medical insurance and $54 per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of 6%, a Medicare tax rate of 1.50%, 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:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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