An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? (Round your intermediate calculations to two decimal places.)

$4,672.25

Explanation:

The computation of the amount of net pay for the employee is shown below:

Gross pay  $5.500  (A)

Less: Deductions    

Social Security$341($5,500 × 6.20%)

Medicare$79.75  ($5,500 × 1.45%)

Federal income taxes$182  

Health insurance$150  

Retirement plan$75

Total deductions $827.75  (B)

Net pay       $4,672.25     (A - B)

We simply deduct the deductions allowed from the gross pay so that the net pay amount could arrive

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.

answer; sales of books;