Let's verify Juanita's paycheck step-by-step using the provided deductions and calculations:
1. Verify Social Security Tax:
The Social Security tax is 6.2% of gross pay.
[tex]\[
\text{Social Security Tax} = 0.062 \times \text{Gross Pay}
\][/tex]
Given: Gross Pay = [tex]$1,020.00
\[
\text{Social Security Tax} = 0.062 \times 1020.00 = 63.24 \quad (\text{This matches the reported deduction})
\]
2. Verify Medicare Tax:
The Medicare tax is 1.45% of gross pay.
\[
\text{Medicare Tax} = 0.0145 \times \text{Gross Pay}
\]
Given: Gross Pay = $[/tex]1,020.00
[tex]\[
\text{Medicare Tax} = 0.0145 \times 1020.00 = 14.79 \quad (\text{This matches the reported deduction})
\][/tex]
3. Verify State Tax:
The state tax is 19% of the federal tax.
[tex]\[
\text{State Tax} = 0.19 \times \text{Federal Tax}
\][/tex]
Given: Federal Tax = [tex]$107.00
\[
\text{State Tax} = 0.19 \times 107.00 = 20.33 \quad (\text{This matches the reported deduction})
\]
4. Verify Net Pay:
To find the net pay, we subtract the deductions from the gross pay.
\[
\text{Net Pay} = \text{Gross Pay} - \text{Federal Tax} - \text{Social Security Tax} - \text{Medicare Tax} - \text{State Tax}
\]
Given:
- Gross Pay = $[/tex]1,020.00
- Federal Tax = [tex]$107.00
- Social Security Tax = $[/tex]63.24
- Medicare Tax = [tex]$14.79
- State Tax = $[/tex]20.33
Calculate:
[tex]\[
\text{Net Pay} = 1020.00 - 107.00 - 63.24 - 14.79 - 20.33 = 814.64 \quad (\text{This matches the reported net pay})
\][/tex]
Since all deductions and the net pay match the reported values, the correct statement is:
a. The net pay is correct.
