Mike kohl, an employee of spotswood company, had gross earnings for the month of october of $8,000. fica taxes were 7.65% of gross earnings, federal income taxes amounted to $1,270 for the month, state income taxes were 2% of gross earnings, and mike authorized voluntary deductions of $20 per month to the united fund. what is the net pay for mike kohl?

net pay is $5938

Explanation:

Given data

gross earnings = $8000

FICA taxes = 7.65% of gross earnings

federal  income taxes  = $1,270 monthly

state income taxes = 2% of gross earnings

voluntary deductions = $20 per month

to find out

net pay for Mike Kohl

solution

we know we have gross earning is $8000

and here

FICA taxes = 7.65% of gross earnings = 7.68 % × 8000 = $612

and

state income tax =  2%  gross earnings = 2% × 8000 = $160

so that

net pay will be

net pay = gross earnings - FICA taxes  - state income tax - federal  income taxes - voluntary deductions

put here all value we get

net pay = 8000 - 612  - 160 - 1270 - 20

so net pay is $5938

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation: