Reference no: EM132438506

Question - An employee earns $6,400 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $218 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $186 and contributes $93 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? (Round your intermediate calculations to two decimal places.)

a) $5,506.20

b) $5,362.20

c) $5,067.80

d) $5,413.40

e) $5,016.60