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assuming a fica tax rate of 7.65% on the first $127,200 in wages, 1.45% on amounts in excess of $127,200, and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $190,200 for the year?

Respuesta :

The employee's net pay for the year will be equal to $142067.28

In order to calculate the net pay first we subtract the tax rate amount from the total wage of $190200 for the year.

Federal tax rate = $190200 - (0.2×$190200)

Federal tax rate = $152160

When we apply The FICA tax rate of 7.65% on $127200

First amount = $127200 - (0.0765×$127200)

First amount = $127200 - $9730.8

First amount = $117469.2

Excess amount = $152160 - $127200

Excess amount = $24960

Now, we apply the 1.45% rate to the amount $24960

Second amount = $24960 - (0.0145×$24960)

Second amount = $24598.08

We now simply add the two calculated amounts

Net pay = First amount + Second amount

Net pay = $117469.2 + $24598.08

Net pay = $142067.28

Learn more about Net pay at:

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