Jamie recently started working as
manager at a company. He will be paid
an annual salary of $42,600 and will be
paid monthly. The company requires the
following deductions:
• Social Security (6.2%)
• Medicare (1.4%)
• State Income Tax (3%)
• Federal Income Tax (13%)
• Medical and Dental Insurance ($260 per month)
• Retirement ($280 per month)
How much should his monthly net paycheck be?
a $2587.55
b. $2172.20
$2667 20
$2712.40
d

B

Step-by-step explanation:

From annual salary of 42,600, we have to subtract the following percentages:

Social Security:

0.062 * 42,600 = 2641.2

Medicare:

0.014 * 42,600 = 596.4

State Income Tax:

0.03 * 42,600 = 1278

Federal Income Tax:

0.13 * 42,600 = 5538

Total Deductions (from percentages) = 2641.2 + 596.4 + 1278 + 5538 = 10053.6

Now, remaining salary:

42,600 - 10053.6 = 32546.4 (annual)

Divided by 12 to get monthly:

32546.4 / 12 = 2712.2 (monthly)

Now, monthly deductions are:

260 + 280 = 540

Net Salary: 2712.2 -  540 =2172.2

d

step-by-step explanation: