BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Jerry’s gross pay for this pay period was $525.00. He had the following deductions taken from his pay check ( Federal Income Tax $78.75, State Income Tax $36.75, FICA $40.16). What is his net pay?

A	$525.00
B	$369.34
C	$155.66

Explanation:

Detailed explanation-1: -Gross Salary is employee provident fund (EPF) and gratuity subtracted from the Cost to Company (CTC). To put it in simpler terms, Gross Salary is the amount paid before the deduction of taxes or other deductions and is inclusive of bonuses, overtime pay, holiday pay, and other differentials.

Detailed explanation-2: -Net Pay = Gross Pay – Deductions and Taxes It’s that simple. All you have to do is figure out your gross pay and total deductions and taxes, then subtract the latter from the former.

Detailed explanation-3: -Again, gross income refers to the total amount you earn before taxes and other deductions, which is how an annual salary is typically expressed. Simply take the total amount of money (salary) you’re paid for the year and divide it by 12.

There is 1 question to complete.