### FINANCIAL MANAGEMENT

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Sara earns \$10.00 an hour. She worked 40 hours during this pay period. Her gross pay was \$400.00. She had the following deductions taken from her pay stub (\$60.00 in Federal Income Tax, \$28.00 in State Income Tax, \$30.60 in FICA). What is Sara’s net pay?
 A \$118.60 B \$518.60 C \$281.40
Explanation:

Detailed explanation-1: -Gross Pay = Annual Salary Amount / Number of Pay Periods To earn a gross pay of \$10, 000/month, an employee makes \$120, 000 annually and receives 12 paychecks. Gross pay per check decreases with additional pay periods.

Detailed explanation-2: -Net Pay = Gross Pay – Deductions and Taxes All you have to do is figure out your gross pay and total deductions and taxes, then subtract the latter from the former. The resulting number is your net pay, and it reveals everything you need to understand your gross vs. net salary.

Detailed explanation-3: -Subscribe now. Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.

There is 1 question to complete.