finding the net pay for the week

Question

Skip Ownby earns $80,000 per year. The deductions from his weekly paycheck are: FIT of $247.48, SIT of $68.22, medical insurance of $98.00, Social Security, and Medicare. What is Skip's net pay for a week?

Answer 1

80,000/52 - (247.48 + 68.22 + 98.00) = weekly net pay

 

1,538.46 - 413.70 = 1124.76

 

 

Using 2016 FICA deductions:

 

Social Security: 12.4% on your first $118,500 of wages
Medicare: 2.9% on all your wages

Total FICA: 15.3% maximum

 

1538.46 (.153) = 235.38 FICA deduction

 

1538.46 - 235.38 - 413.70 = 889.48 weekly net pay