Question

Janet's gross pay is $750, from which $31 is deducted for OASDI, $10 for Medicare, and $14 for income tax. What is her net pay?

Answer 1

Janet's gross pay is $750, from which $31 is deducted for OASDI, $10 for Medicare, and $14 for income tax. What is her net pay?

Answer 2

Janet's net pay will be $695.

First Janet’s initial payment is $750 and this payment is before deducting the tax from the gross payment. From her payment 31$ is deducted for OSADI, $10 is deducted for Medicare and $14 is deducted for the income tax payment.  

So her net payment will be, $750 - $31 - $10 - $14 = $695

Gross pay = Income before tax deduction and Net pay= Income after tax deduction.