An employee earns 5800 per month working for an employer


An employee earns $5,800 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, 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 $194 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $162 and contributes $81 to a retirement plan each month. What is the amount of net pay for the employee for the month of January?

a $5,003.40

b $4,559.70

c $4,919.30

d $4,606.10

e $4,872.90

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Financial Accounting: An employee earns 5800 per month working for an employer
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