Berkley's gross pay for the month is $5,400. His deduction for federal income tax is based on a...
Question:
Berkley's gross pay for the month is $5,400. His deduction for federal income tax is based on a rate of 18%. He has no voluntary deductions. His yearly pay is under the limit for OASDI. What is the amount of Berkley's net pay? (Assume a FICA-OASDI Tax of 4.2/o and HCA-Medicare Tax of 1.45%.)
A) $4,122.90
B) $5,400.00
C) $5,094.90
D) $4,428.00
Payroll Taxes:
Payroll taxes are deducted from all employees payroll prior to receipt. The taxes are paid to local, state, and national governments, on the employee's behalf and fund projects and programs that benefit all citizens.
Answer and Explanation: 1
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View this answerThe correct answer is A) $4,122.90
Each tax is multiplied by the tax rate and deducted from gross monthly income. Since the annual gross salary is...
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Payroll Cost Calculations
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Chapter 3 / Lesson 6
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When a company uses its payroll it is formulating a system to distribute paychecks to its employees for the hours worked in the week. Learn more about payroll cost calculations, its definitions, gross pay, overtime and how to calculate net pay.
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