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.
