Jeff jones earns $1,200 per week. he's married and claims four withholding allowances. the social security rate is 6.2% on $118,500, and medicare is 1.45%. each paycheck, his employer also deducts $42.50 for health insurance. what's his net pay?

$1068.95

Step-by-step explanation:

Gross Pay = $1200

Health Insurance deducted = $42.50

Taxable Pay = 1200 - 42.50

                     = $1157.50

Social security rate = 6.2%

                                =

                                = 0.062    (converted into decimal)

Social security Tax = Taxable Pay * Social security rate

                                = 1157.50 *0.062

                                = 71.765

                                = $71.77 (rounded off to the nearest hundredth)

Medicare Tax rate = 1.45%

                               =

                               = 0.0145      (converted into decimal)

Medicare Tax = Taxable Pay * Medicare Tax rate

                       = 1157.50 * 0.0145

                        = $16.78

Net Pay =  Gross Pay - Health Insurance deducted - Social security Tax - Medicare Tax

= 1200 - 42.50 - 71.77 - 16.78

= 1200 - (42.50 + 71.77 + 16.78)

= 1200 - 131.05

= $1068.95