Portia Grant Is an Employee Who Is Paid Monthly

question 159

Multiple Choice

Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $8,260. The FICA tax for social security is 6.2% of the first $118,500 of employee earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of .6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,325.17. Her net pay for the month is:

• A)$6,422.71
• B)$6,246.94
• C)$6,302.94
• D)$5,868.94
• E)$7,194.11

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Definitions:

Frustrated Contract

A contract under which performance by a party is rendered impossible due to an unexpected or unforeseen change in circumstances affecting the agreement.

Specific Performance

A legal remedy in contracts law where a court orders a party to perform their obligations under a contract, rather than paying damages for not fulfilling the contract.

Injunction

A legal order from a court that compels a party to do or to refrain from doing specific acts, often used to prevent harm or to preserve status quo pending litigation.

Quantum Meruit

Quantum Meruit is a legal principle that allows a party to recover the reasonable value of services provided, even if there was no formal contract, under circumstances where payment is expected.