6.3 Income Statements

1a. Jack’s employer just switched to a new payroll system. He wants to make sure that his net pay has been computed correctly. His gross pay per pay period is $587.34. He has the following deductions: Social Security tax (6.2%), Medicare tax (1.45%), federal withholding tax $164.45, state withholding tax $76.34, retirement insurance contribution $50.00, disability insurance fee $8.00, medical insurance fee $23.00, and dental insurance fee $8.00.

a. What should his net pay be for this pay period?

• $315.23

• $212.61

• $374.92

• $257.55

1b. Jack’s employer just switched to a new payroll system. He wants to make sure that his net pay has been computed correctly. His gross pay per pay period is $587.34. He has the following deductions: Social Security tax (6.2%), Medicare tax (1.45%), federal withholding tax $164.45, state withholding tax $76.34, retirement insurance contribution $50.00, disability insurance fee $8.00, medical insurance fee $23.00, and dental insurance fee $8.00.

b. What percentage of Jack's gross pay accounts for all of his deductions? Round to the nearest tenth of a percent?

• 63.8%

• 67.1%

• 62.5%

• 65.3%

2a. Tony makes an hourly salary of $11.50 for 40 regular hours of work. For any time worked beyond 40 hours, he is paid at a rate of time-and-a-half per hour. Last week, Tony worked 46 hours. Find each of the following for this period.

a. Tony’s gross pay (Need help. Look at chapter 5 notes)

• $498.25

• $469

• $563.50

• $552

2b. Tony makes an hourly salary of $11.50 for 40 regular hours of work. For any time worked beyond 40 hours, he is paid at a rate of time-and-a-half per hour. Last week, Tony worked 46 hours. Find each of the following for this period.

b. What is his Social Security deduction?

• $34.94

• $29.08

• $30.89

• $34.22

2c. Tony makes an hourly salary of $11.50 for 40 regular hours of work. For any time worked beyond 40 hours, he is paid at a rate of time-and-a-half per hour. Last week, Tony worked 46 hours. Find each of the following for this period.

c. What is his Medicare deduction?

• $6.80

• $8.00

• $7.22

• $8.17

2d. Tony makes an hourly salary of $11.50 for 40 regular hours of work. For any time worked beyond 40 hours, he is paid at a rate of time-and-a-half per hour. Last week, Tony worked 46 hours. Find each of the following for this period.

d. 25% is taken out in total for Federal and State taxes all together. How much does Tony have deducted for Federal/State taxes?

• $130.19

• $120.56

• $150.79

• $140.88

2e. Tony makes an hourly salary of $11.50 for 40 regular hours of work. For any time worked beyond 40 hours, he is paid at a rate of time-and-a-half per hour. Last week, Tony worked 46 hours. Find each of the following for this period.

e. What is Tony's net pay for this pay period?

• $379.51

• $392.67

• $318.23

• $332.17

2f. Tony makes an hourly salary of $11.50 for 40 regular hours of work. For any time worked beyond 40 hours, he is paid at a rate of time-and-a-half per hour. Last week, Tony worked 46 hours. Find each of the following for this period.

f. What percent of Tony's gross pay is his net pay?

• 63.8%

• 62.9%

• 67.3%

• 66.4%

3a. Elizabeth works for Picasso Paint Supplies. Her annual salary is $72,580.

a. Elizabeth is paid every other week. What is her biweekly gross pay?

• $2,791.54

• $6,048.33

• $1,395.77

• $3,024.17

3b. Elizabeth works for Picasso Paint Supplies. Her annual salary is $72,580.

b. What is Elizabeth’s biweekly Social Security deduction?

• $4,499.96

• $230.15

• $173.08

• $302.74