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:

Investment

The allocation of resources, usually financial, into assets with the expectation of generating future profit or income.

Per Capita GDP

The gross domestic product of a country divided by its population, indicating the average economic output per person.

Population

The total number of people inhabiting a specific area or the members of a particular species within an ecological community.

GDP Deflator

A method for measuring the price levels of all new, domestically originated, final goods and services in an economic framework.