Problem: An employee who earns $20 per hour worked 38 hours in a week, has federal income tax withheld at a rate of 10% and state income tax withheld at a rate of 5%. Which of the following is true? The employee will see a deduction of $76.00 for State Income Tax. The employee will earn $760 gross pay for this paycheck. The employee will see a deduction of $58.14 for Federal Income Tax. The employee will earn $760 for net pay for this paycheck.