Compute the Net Pay for Each Employee

question 40

Essay

Compute the net pay for each employee.The FICA tax rate is: OASDI 6.2% on a limit of $106,800; Medicare is 1.45%; federal income tax is 15%; state income tax is 5%; and medical insurance is $100 per employee.
$\begin{array}{llcc} & \text {Cumulative Pay } & \text {This Week's Pay } \\ \text { Sarah Ahti } &\$75,000&\$4,000\\ \text { Matt DeFore } &\$62,000&\$2,000\\\end{array}$

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Definitions:

Enjoyment

A feeling of pleasure and satisfaction obtained from various life activities or experiences.

Opportunity Cost

The financial implication of not selecting the following best possibility when faced with a decision.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid by borrowers to lenders.

Savings Account

A deposit account held at a bank or other financial institution providing principal security and a modest interest rate.