kimberly12184
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Juanita receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is [tex]$6.2 \%$[/tex] of gross pay, Medicare tax is [tex]$1.45 \%$[/tex] of gross pay, and state tax is [tex]$19 \%$[/tex] of federal tax, determine if Juanita's net pay is correct.

\begin{tabular}{|c|c|c|c|c|c|c|}
\hline & Earnings & \multicolumn{5}{|c|}{ Deductions } \\
\hline Week Ended & Regular & \begin{tabular}{l}
FED. \\
WITH.
\end{tabular} & \begin{tabular}{l}
SOC. \\
WITH.
\end{tabular} & \begin{tabular}{l}
MED \\
CARE
\end{tabular} & \begin{tabular}{l}
STATE \\
WITH.
\end{tabular} & NET PAY \\
\hline [tex]$11 / 17$[/tex] & [tex]$\$[/tex] 1,020.00[tex]$ & $[/tex]\[tex]$ 107.00$[/tex] & [tex]$\$[/tex] 63.24[tex]$ & $[/tex]\[tex]$ 14.79$[/tex] & [tex]$\$[/tex] 20.33[tex]$ & $[/tex]\[tex]$ 814.64$[/tex] \\
\hline
\end{tabular}

Choose the true statement below:
a. The net pay is correct.
b. The Social Security tax is not correct.
c. The Medicare tax is not correct.
d. The state tax is not correct.

Please select the best answer from the choices provided.



Answer :

GinnyAnswer
Let's verify the values step by step:

1. Calculating Social Security Tax (6.2%):
Gross Pay: [tex]\( \$1020.00 \)[/tex]

Social Security Tax:
[tex]\[ 0.062 \times 1020.00 = 63.24 \][/tex]
The reported value for Social Security tax is [tex]\( \$63.24 \)[/tex], which matches our calculation.

2. Calculating Medicare Tax (1.45%):
Gross Pay: [tex]\( \$1020.00 \)[/tex]

Medicare Tax:
[tex]\[ 0.0145 \times 1020.00 = 14.79 \][/tex]
The reported value for Medicare tax is [tex]\( \$14.79 \)[/tex], which matches our calculation.

3. Calculating State Tax (19% of Federal Tax):
Federal Tax: [tex]\( \$107.00 \)[/tex]

State Tax:
[tex]\[ 0.19 \times 107.00 = 20.33 \][/tex]
The reported value for State tax is [tex]\( \$20.33 \)[/tex], which matches our calculation.

4. Calculating Total Deductions:
[tex]\[ 107.00 + 63.24 + 14.79 + 20.33 = 205.36 \][/tex]

5. Calculating Net Pay:
[tex]\[ 1020.00 - 205.36 = 814.64 \][/tex]
The reported net pay is [tex]\( \$814.64 \)[/tex], which matches our calculation.

Given that all our calculated deductions match the reported values and the net pay is correct, the true statement is:

a. The net pay is correct.

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