Question

The payroll records of Speedy Software show the following information about Marsha Gottschalk, an employee, for the weekly pay period ending September 30, 2017. Gottschalk is single and claims one allowance. Compute her Social Security tax (6.2%), Medicare tax (1.45%), federal income tax withholding, state income tax (1.0%), and net pay for the current pay period. (Use the withholding table in Exhibit 9A.6 and round tax amounts to the nearest cent.)

Total (gross) earnings for current pay period . \( 740

Cumulative earnings of previous pay periods . \)9,700

Short answer

The net pay of Marsha Gottschalk is $579.99.

Step-by-step solution

Definition of net pay

A net pay is an amount paid to an employee after all the tax deductions.

Calculation of net pay

Gross Pay		$740
Less:
Social Security Taxes	45.88
Medicare Taxes	10.73
Federal Income Taxes	$96
State Income Tax	$7.4
Total Deduction		160.01
Net Pay		$579.99