Mike Kohl, an employee of Spotswood Company, has gross earnings for the month of October of $8,000. FICA taxes are 8% of gross earnings, federal income taxes amount to $1,270 for the month, state income taxes are 2% of gross earnings, and Mike authorizes voluntary deductions of $20 per month to the United Fund. What is the net pay for Mike Kohl?

Question

Business

Julissa Stuart

8 October, 00:14

Mike Kohl, an employee of Spotswood Company, has gross earnings for the month of October of $8,000. FICA taxes are 8% of gross earnings, federal income taxes amount to $1,270 for the month, state income taxes are 2% of gross earnings, and Mike authorizes voluntary deductions of $20 per month to the United Fund. What is the net pay for Mike Kohl?

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Ariana Harding · Answer 1

Net pay 5,910

Explanation:

From the gross earnings we need to subtract each concept to get the net pay.

gross earnings 8,000

FICA 8% of 8,000 (640)

federal income (1,270)

state 2% of 8,000 (160)

United Fund (20)

Net pay 5,910

That is October's cash amount Mike will receive for his salary

Key-terms

Gross pay: the salary beofre any deduction

Net-pay the salary payable to Mike in cash.

the diference is withold to cover taxes and volunteer deduction like union, ihealth insurance, and other.