Billy Bean's earnings are subject to deductions for Social Security, Medicare and FIT. To date his cumulative earnings are $105,800. This week Bill earns $2,200. Billy, who is married, is paid weekly and claims 3 exemptions. Assume Social Security rate is 6.2% on $106,800 and 1.45% for Medicare. His net pay for the week is:

Question

ranga · Answer

This problem has a lot of unneeded extraneous information. Let me see... 

Total percentage of Social Security + Medicare = 6.2 + 1.45 = 7.65% 

His earning this week = $2200. 
So the total he pays towards Social Security and Medicare = 2200 x 7.65 / 100 = 168.30 So his net pay = 2200 - 168.30 = $2031.70 

Is this one of the choices?

anonymous · Answer

No these are the choices
$ 1,854.69
 $ 1,718.29
 $ 1,972.49
 $ 1,792.69

ranga · Answer

In the problem is the first number $105,800 and then later it is $106,800?

anonymous · Answer

ya that's how its written in the question

ranga · Answer

Is FIT Federal Income Tax?

anonymous · Answer

yes

ranga · Answer

Oh, are you supposed to look up some tax table to find out how much he would pay for the federal income tax?  Because FIT is not given in the problem but Social Security and Medicare percentages are given.

anonymous · Answer

no that's all it says

ranga · Answer

Without a tax table or a formula for FIT we cannot calculate the federal income tax.  That is probably why the answer has numbers a few hundred dollars short than my calculation.  The FIT info is missing!

anonymous · Answer

thank you

ranga · Answer

alright.