lauren has gross pay of $765 and federal tax withholdings of $68. determine laurens net pay if she has the…

lauren has gross pay of $765 and federal tax withholdings of $68. determine laurens net pay if she has the additional items withheld: social security tax that is 6.2% of her gross pay medicare tax that is 1.45% of her gross pay state tax that is 22% of her federal tax a. $691.52 b. $666.21 c. $636.98 d. $623.52 please select the best answer from the choices provided
Answer
Explanation:
Step1: Calculate Social Security tax
$765\times 0.062 = 47.43$
Step2: Calculate Medicare tax
$765\times 0.0145=11.0925$
Step3: Calculate State tax
$68\times0.22 = 14.96$
Step4: Calculate total deductions
$68 + 47.43+11.0925 + 14.96=141.4825$
Step5: Calculate net - pay
$765-141.4825 = 623.5175\approx623.52$
Answer:
D. $623.52$