Joan's gross pay is $400, from which $24.80 is deducted for OASDI, $5.20 for Medicare, and $45 for income tax. What is her net pay?

Question

A.
$325
B.
$475
C.
$75
D.
$400

Answer 1

To find Joan's net pay, we need to subtract all the deductions from her gross pay.

1. Gross Pay: $400
2. Total Deductions:
   • OASDI: $24.80
   • Medicare: $5.20
   • Income Tax: $45

Now, let's add up the deductions:

\[ 24.80 + 5.20 + 45 = 75 \]

Now, subtract the total deductions from the gross pay:

\[ 400 - 75 = 325 \]

Therefore, Joan's net pay is $325.

The correct answer is A. $325.