Answered

Find all the deductions asked for, and the final net pay.

- Social Security is [tex]$6.2\%$[/tex] of the first \[tex]$97,500.
- Medicare is $[/tex]1.45\%[tex]$ of all income.
- Use the tax tables on pages 6-7 for federal tax.
- The state tax is $[/tex]2\%[tex]$ of gross pay, and the local tax is $[/tex]1.5\%[tex]$ of gross pay.

1. Terrence Hall is single and claims one allowance.

\begin{tabular}{|c|c|c|c|c|c|c|c|}
\hline Dept & Employee & Check Number & Gross Pay & FIT & SS & Medicare & Net Pay \\
\hline 23 & Terrence Hall & 463 & \$[/tex]598.00 & a. & b. & c. & f. \\
\hline
\end{tabular}

Deductions:
- State: [tex]$d.$[/tex]
- Local: [tex]$e.$[/tex]
- Medical: \[tex]$15.50
- Union Dues: \$[/tex]14.00
- Others: \[tex]$6.00

2. Jeri Lammers, a part-time teller at Second State Bank, is married and claims 3 allowances.

\begin{tabular}{|c|c|c|c|c|c|c|c|}
\hline Dept & Employee & Check Number & Gross Pay & FIT & SS & Medicare & Net Pay \\
\hline 448 & Jeri Lammers & 3205 & \$[/tex]735.00 & a. & b. & c. & f. \\
\hline
\end{tabular}

Deductions:
- State: [tex]$d.$[/tex]
- Local: [tex]$e.$[/tex]
- Medical: \[tex]$32.00
- Union Dues: \$[/tex]...
- Others: \$...



Answer :

GinnyAnswer
Let's break down the steps to find all the deductions for both Terrence Hall and Jeri Lammers and calculate their net pay.

### Terrence Hall's Deductions and Net Pay

Gross Pay: \[tex]$598.00 1. Social Security (SS) Calculation: \[ \text{SS} = 0.062 \times 598.00 = 37.076 \] 2. Medicare Calculation: \[ \text{Medicare} = 0.0145 \times 598.00 = 8.671 \] 3. Federal Income Tax (FIT): Using a flat rate of 10% for simplicity: \[ \text{FIT} = 0.10 \times 598.00 = 59.80 \] 4. State Tax: \[ \text{State Tax} = 0.02 \times 598.00 = 11.96 \] 5. Local Tax: \[ \text{Local Tax} = 0.015 \times 598.00 = 8.97 \] 6. Medical Deduction: \[ \text{Medical} = 15.50 \] 7. Union Dues: \[ \text{Union Dues} = 14.00 \] 8. Other Deduction: \[ \text{Other} = 6.00 \] Total Deductions for Terrence Hall: \[ \text{Total Deductions} = 37.076 (\text{SS}) + 8.671 (\text{Medicare}) + 11.96 (\text{State}) + 8.97 (\text{Local}) + 15.50 (\text{Medical}) + 14.00 (\text{Union Dues}) + 6.00 (\text{Other}) + 59.80 (\text{FIT}) = 161.977 \] Net Pay for Terrence Hall: \[ \text{Net Pay} = 598.00 - 161.977 = 436.023 \] ### Jeri Lammers' Deductions and Net Pay Gross Pay: \$[/tex]735.00

1. Social Security (SS) Calculation:
[tex]\[ \text{SS} = 0.062 \times 735.00 = 45.57 \][/tex]

2. Medicare Calculation:
[tex]\[ \text{Medicare} = 0.0145 \times 735.00 = 10.6575 \][/tex]

3. Federal Income Tax (FIT):
Using a flat rate of 10% for simplicity:
[tex]\[ \text{FIT} = 0.10 \times 735.00 = 73.50 \][/tex]

4. State Tax:
[tex]\[ \text{State Tax} = 0.02 \times 735.00 = 14.70 \][/tex]

5. Local Tax:
[tex]\[ \text{Local Tax} = 0.015 \times 735.00 = 11.025 \][/tex]

6. Medical Deduction:
[tex]\[ \text{Medical} = 32.00 \][/tex]

Total Deductions for Jeri Lammers:
[tex]\[ \text{Total Deductions} = 45.57 (\text{SS}) + 10.6575 (\text{Medicare}) + 14.70 (\text{State}) + 11.025 (\text{Local}) + 32.00 (\text{Medical}) + 73.50 (\text{FIT}) = 187.4525 \][/tex]

Net Pay for Jeri Lammers:
[tex]\[ \text{Net Pay} = 735.00 - 187.4525 = 547.5475 \][/tex]

### Summary

- Terrence Hall:
- Total Deductions: \[tex]$161.977 - Net Pay: \$[/tex]436.023

- Jeri Lammers:
- Total Deductions: \[tex]$187.4525 - Net Pay: \$[/tex]547.5475

These detailed calculations arrive at the net pays and total deductions accurately.