What would be the journal entry to record the payroll in this case? Gross Pay is $1,000 and tax rate is 20%. The deduction for federal income tax is: $1,000 x 0.20 = $200 Voluntary Deductions: $150 Total Deductions: $200 $150 = $350 Gross Pay - Total Deductions $1,000 - $350 = $650 John's Net Pay is $650