Juanita receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is [tex]6.2\%[/tex] of gross pay, Medicare tax is [tex]1.45\%[/tex] of gross pay, and state tax is [tex]19\%[/tex] of federal tax, determine if Juanita's net pay is correct.

\begin{tabular}{|c|c|c|c|c|c|c|}
\hline & Earnings & \multicolumn{4}{|c|}{Deductions} & \multirow[b]{2}{*}{NET PAY} \\
\hline
\begin{tabular}{l}
Week \\
Ended
\end{tabular} & Regular & \begin{tabular}{l}
FED. \\
WITH.
\end{tabular} & \begin{tabular}{l}
SOC. \\
WITH.
\end{tabular} & \begin{tabular}{l}
MED \\
CARE.
\end{tabular} & \begin{tabular}{l}
STATE \\
WITH.
\end{tabular} & \\
\hline
[tex]$11/17$[/tex] & [tex]$\$[/tex]1,020.00[tex]$ & $[/tex]\[tex]$107.00$[/tex] & [tex]$\$[/tex]63.24[tex]$ & $[/tex]\[tex]$14.79$[/tex] & [tex]$\$[/tex]20.33[tex]$ & $[/tex]\[tex]$814.64$[/tex] \\
\hline
\end{tabular}

Choose the true statement below.

A. The net pay is correct.
B. The Social Security tax is not correct.
C. The Medicare tax is not correct.
D. The state tax is not correct.

Please select the best answer from the choices provided:

A.
B.
C.
D.



Answer :

Let's carefully go through the steps to determine if Juanita's net pay is correct, considering the given deductions and the percentages mentioned.

1. Gross Pay: Juanita's gross pay is [tex]\( \$1020.00 \)[/tex].

2. Federal Tax: The federal tax deducted is [tex]\( \$107.00 \)[/tex].

3. Social Security Tax:
- Social Security tax is calculated as [tex]\( 6.2\% \)[/tex] of the gross pay.
- Calculation: [tex]\( 0.062 \times 1020.00 = 63.24 \)[/tex]
- Given Social Security tax: [tex]\( \$63.24 \)[/tex]

4. Medicare Tax:
- Medicare tax is calculated as [tex]\( 1.45\% \)[/tex] of the gross pay.
- Calculation: [tex]\( 0.0145 \times 1020.00 = 14.79 \)[/tex]
- Given Medicare tax: [tex]\( \$14.79 \)[/tex]

5. State Tax:
- State tax is calculated as [tex]\( 19\% \)[/tex] of the federal tax.
- Calculation: [tex]\( 0.19 \times 107.00 = 20.33 \)[/tex]
- Given State tax: [tex]\( \$20.33 \)[/tex]

6. Calculate the expected net pay:
- Start with the gross pay: [tex]\( \$1020.00 \)[/tex]
- Subtract the total deductions:
- Federal tax: [tex]\( \$107.00 \)[/tex]
- Social Security tax: [tex]\( \$63.24 \)[/tex]
- Medicare tax: [tex]\( \$14.79 \)[/tex]
- State tax: [tex]\( \$20.33 \)[/tex]

- Total deductions: [tex]\( 107.00 + 63.24 + 14.79 + 20.33 = 205.36 \)[/tex]

- Expected net pay calculation: [tex]\( 1020.00 - 205.36 = 814.64 \)[/tex]
- Given net pay: [tex]\( \$814.64 \)[/tex]

Since the calculated net pay (\[tex]$814.64) matches the given net pay (\$[/tex]814.64), we can conclude that Juanita's net pay is correct.

Therefore, the best answer is:

a. The net pay is correct.

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