A foreman's gross pay is $2,460. Deductions are $310 federal withholding, $188.19 FICA/Medicare, and $75 health insurance. What net pay is issued?
Correct Answer
C) $1,886.81
Net pay is gross pay minus all listed deductions, or $1,886.81.
Why This Is the Correct Answer
Net pay is gross pay minus all listed deductions, or $1,886.81.
Why the Other Options Are Wrong
Option A: $1,811.81
$1,811.81 is below the supported result for net payroll check; it likely skips a premium-pay or employer-cost component.
Option B: $1,861.81
$1,861.81 is below the supported result for net payroll check; it likely skips a premium-pay or employer-cost component.
Option D: $1,961.81
$1,961.81 is above the supported result for net payroll check; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Net Payroll Check ladder for Reconciling Closing: hours climb before dollars add up.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Payroll Accounting, Time Cards and Payroll Checks; use the job ledger figures in the stem and recompute the same accounting measure.
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