Mr. Ortega earns a monthly salary of $9,200. Based on Mr. Ortega's Form W-4, the tax tables require withholding $1,455 per month for income taxes. Mr. Ortega has authorized his employer to deduct $935 per month for medical insurance and $54 per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of 6%, a Medicare tax rate of 1.50%, and an Unemployment tax rate of 6% on the first $7,000 of income. Based on this information, Mr. Ortega's net pay for January 31, Year 1 is:
Mr. Ortega earns a monthly salary of $9,200. Based on Mr. Ortega's Form W-4, the tax tables require withholding $1,455 per month for income taxes. Mr. Ortega has authorized his employer to deduct $935 per month for medical insurance and $54 per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of 6%, a Medicare tax rate of 1.50%, and an Unemployment tax rate of 6% on the first $7,000 of income. Based on this information, Mr. Ortega's net pay for January 31, Year 1 is:
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 24CE
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