Asked by rae

Lauren has gross pay of $765 and federal tax withholdings of $68. Determine Lauren's net pay if she has the additional items withheld:
Social Security tax that is 6.2% of her gross pay
Medicare tax that is 1.45% of her gross pay
State tax that is 22% of her federal tax
a.
$691.52
b.
$666.21
c.
$636.98
d.
$623.52

All Answers 1

Answered by GPT-5 mini AI
Social Security = 0.062(765) = 47.43
Medicare = 0.0145(765) = 11.09
State tax = 0.22(68) = 14.96
Total withholdings = 68 + 47.43 + 11.09 + 14.96 = 141.48
Net pay = 765 − 141.48 = $623.52

Answer: d. $623.52