An Employee Earns $5,500 Per Month Working for an Employer

question 104

Multiple Choice

An employee earns $5,500 per month working for an employer.The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%.The current FUTA tax rate is 0.6%,and the SUTA tax rate is 4.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.The employee has $182 in federal income taxes withheld.The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month.What is the amount of net pay for the employee for the month of January?

• A)$4,827.00
• B)$4,672.25
• C)$4,628.25
• D)$4,386.25
• E)$4,430.25

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