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Mr. Ortega earns a monthly salary of $8,000. Based on Mr. Ortegas Form W-4, the tax tables require withholding $900 per month for income taxes.
Mr. Ortega earns a monthly salary of $8,000. Based on Mr. Ortegas Form W-4, the tax tables require withholding $900 per month for income taxes. Mr. Ortega has authorized his employer to deduct $380 per month for medical insurance and $30 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: a. $5,610 b. $6,090 c. $6,990 d. $5,670
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