During the Month of July, Joel Mayer Earned $2,000

question 31

Multiple Choice

During the month of July, Joel Mayer earned $2,000. Joel has been on the payroll all year at a salary of $2,000 per month. Salaries are paid at the end of each month. Assume that FICA taxes are 7.65 percent of wages up to $50,000; state unemployment tax is 5.0 percent of wages up to $13,000; and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Joel has voluntary withholdings of $75 (in addition to taxes) and that federal and state income tax withholdings are $300 and $100, respectively. What amount is the check, net of all deductions, that Joel received for his July pay?

• A) $1,372
• B) $1,256
• C) $1,314
• D) $1,525

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Definitions:

Taxable Income

Income that is subject to taxes, typically calculated by deducting deductions and exemptions from gross income.

Tax Schedule

Detailed tax documents filed with the IRS to report certain types of income, deductions, or credits.

W-2

A form used in the United States to report wages paid to employees and the taxes withheld from them.

Federal Taxes

Federal taxes are financial charges imposed by the national government on income, business profits, sales, and other forms of economic activity.