At the end of the first pay period of the year, Dan earned $6,700 of salary. Withholdings from Dan’s salary include Federal Insurance Contributions Act (FICA) Social Security taxes at the rate of 6.2%, Federal Insurance Contributions Act (FICA) Medicare taxes at the rate of 1.45%, $804 of federal income taxes, $260 of medical insurance deductions, and $20 of life insurance deductions. Compute Dan’s net pay for this first pay period.
Multiple Choice
$5,896.00
$5,103.45
$6,700.00
$5,383.45
$6,187.45