Mr. Ortega earns a monthly salary of $4,000. Based on Mr. Ortegas Form W-4, the tax tables require withholding $450 per month for income taxes. Mr. Ortega has authorized his employer to deduct $190 per month for medical insurance and $15 per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of 6%, a Medicare tax rate of 1.5%, and an Unemployment tax rate of 6% on the first $7,000 of income. Based on this information, Mr. Ortegas net pay for January 31, Year 1 is

Multiple Choice

• $3,045.

• $4,000.

• $3,000.

• $2,805.