Question

A worker has a monthly gross of $11,000. The worker's year-to-date is $126,500. The worker is married and claims 3 allowances. The worker also has health insurance deducted from his pay. The health insurance costs $4,800 annually. Find the worker's net pay. Social Security Medicare Federal Income Tax Health Insurance Net Pay this month

Answer 1

Solution: Computation of the Employees Net Pay Monthly Gross Salary $11,000 Annually Gross Salary $11,000 X 12 $132,000 Particulars Amount Amount 1,26,500 Annual Gross Salany Social Security Rate 6.2% on $ 1,32,000 $7,590 $1,834 Medicare is 1.45% om $ 1,32,000 Claims 3 allowances $9,424 To claim three or more allowances the earned income should be less than $49,194 $0 Taxable Income $1,17,076 Federal Tax Deduction $22,273| Refer working Note # 1 Health Insurance Cost $4,800 Health insurance cost can be deductable under Schedule A Net Annual Income Pay 90,003 Net Pay for Month $7,500 Computation of Federal Tax Rate working Note #1: $84.20-$1,17076 $ 14,382.50 + 24% of the amount over $ 84,200-24% X ($ 1,17,076-$ 84,201)-$ 7,890 Total $14,382.50$7,890 $ 22,272.50