Maria works for a salary of $2,750

per month. She has federal income tax withheld at the rate of 15
percent, Social Security tax withheld at the rate of 7.2
percent, Medicare tax withheld at the rate of 1.37
percent, and health insurance premiums of $76
per month. Maria’s net pay is $____________.
$2,337.5
$2,063.48
$2,101.83
$2,169.2

1 answer

To calculate Maria's net pay, we need to deduct all the taxes and health insurance premiums from her gross salary. Here's how to do it step by step:

  1. Calculate Federal Income Tax: \[ \text{Federal Income Tax} = \text{Gross Salary} \times \text{Federal Tax Rate} \] \[ = 2750 \times 0.15 = 412.5 \]

  2. Calculate Social Security Tax: \[ \text{Social Security Tax} = \text{Gross Salary} \times \text{Social Security Rate} \] \[ = 2750 \times 0.072 = 198 \]

  3. Calculate Medicare Tax: \[ \text{Medicare Tax} = \text{Gross Salary} \times \text{Medicare Rate} \] \[ = 2750 \times 0.0137 = 37.75 \]

  4. Calculate Total Deductions: \[ \text{Total Deductions} = \text{Federal Income Tax} + \text{Social Security Tax} + \text{Medicare Tax} + \text{Health Insurance Premiums} \] \[ = 412.5 + 198 + 37.75 + 76 = 724.25 \]

  5. Calculate Net Pay: \[ \text{Net Pay} = \text{Gross Salary} - \text{Total Deductions} \] \[ = 2750 - 724.25 = 2025.75 \]

Based on this calculation, it seems none of the provided answer choices matches my calculation. However, if we were to double-check the math:

  • Federal Income Tax: \(412.5\)
  • Social Security Tax: \(198\)
  • Medicare Tax: \(37.75\)
  • Health Insurance Premiums: \(76\)

The total deductions add up to \(724.25\) again, leading to a net pay of \(2025.75\).

Let's provide the closest options or reassess how deductions might have been calculated. However, seeing current choices, something seems to have been miscalculated. If there's any further clarification on rates or values, please let me know! Otherwise, none of the answer options is correct as per the deductions and calculations shown.