Mary Ehrat an employee of Eddington Company has gross earnings for the month of October of $8000. FICA taxes are 7.65% of gross earnings federal income taxes amount to $1270 for the month state income taxes are 2% of gross earnings and Mary authorizes voluntary deductions of $20 per month to the United Fund. What is the net pay for Mary Ehrat?

A) $6118
B) $5938
C) $5958
D) $6098

Question

Adrina Mensah-king · Accepted Answer

Final Answer : B, Explanation :  First, we need to calculate the deductions:FICA taxes: 7.65% of $8000 = $612Federal Income taxes: $1270State Income taxes: 2% of $8000 = $160Voluntary deduction: $20Next, we add up these deductions:$612 + $1270 + $160 + $20 = $2062Finally, we subtract the total deductions from the gross earnings to get the net pay:$8000 - $2062 = $5938Therefore, the answer is B.

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