Asked Jan 19, 2020

Employee Net Pay

Maxwell Inverness's weekly gross earnings for the week ended April 22 were $1,302, and his federal income tax withholding was $234.36. Assuming the social security rate is 6% and Medicare is 1.5%, what is Maxwell's net pay?

Note: If required, round your answer to two decimal places.


Expert Answer

Step 1

Payroll taxes:

 Payroll taxes are the taxes withheld by the employers from the wages/salary payable to the employees and is paid on behalf of the employees. An equal amount is considered by the employers on the basis of employee’s wages/salary. These tax are imposed to finance the social insurance program like FCI (Federal Insurance Contribution) or MEDFIC (Medical Federal Insurance contribution).

Step 2

Calculate the net pay of per...

Accounting homework question answer, step 2, image 1

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