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22 October, 21:26

Chin needs more money in his net pay each month so he plans to reduce his federal income tax deduction from 12% to 11%. His monthly gross pay is $3,500, and his deductions before the change are listed in the table.

Deduction

Dollar Amount

Federal Income Tax

$420

State Income Tax

$95

Social Security

$89

Medicare

$40

What will be his new monthly net pay? Round your answer to the nearest dollar.

A.$2821 B.$2857C.$2860 D.$2891

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Answers (1)
  1. 22 October, 21:59
    0
    The correct answer is D. $2891. That is calculated by having the following:

    Chin's gross pay minus the deductions. However, the Federal Income tax will only be $385 instead of $420 since we are reducing her tax from 12% to 11%.

    So, $3500 - (385+95+89+40) = $2891.
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