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MC Qu. 129 An employee earns... An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2%

MC Qu. 129 An employee earns...

An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employees pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? (Round your intermediate calculations to two decimal places.)

Multiple Choice

  • $4,827.00

  • $4,386.25

  • $4,672.25

  • $4,628.25

  • $4,430.25

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