Compute the Net Pay for Each Employee

question 47

Essay

Compute the net pay for each employee.The FICA tax rate is: OASDI 6.2% on a limit of $117,000;Medicare is 1.45%;federal income tax is 15%;state income tax is 5%;and medical insurance is $100 per employee.
$\begin{array}{lll}&\text { Cumulative Pay }&\text { This Week's Pay }\\\text { Sarah Ahti } & \$ 75,000 & \$ 3,500 \\\text { Matt DeFore } & \$ 62,000 & \$ 2,500\end{array}$

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Definitions:

Output

The total amount of goods or services produced by a firm, industry, or economy within a given period.

Short-Run Supply

The supply of goods that varies with changes in price in the short term, where at least one factor of production is fixed.

Average Variable Cost

The total variable costs divided by the quantity of output produced, indicating the average cost of production per unit when fixed costs are excluded.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service.