Juanita receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 19% of federal tax, determine if Juanita's net pay is correct.
 	
Earnings
Deductions
 
Week Ended
   Regular    
FED.          SOC.        MED         STATE
WITH.        WITH.       CARE.       WITH.
NET PAY
11/17
$1,020.00
$107.00    $63.24     $14.79       $20.33
$814.64
Choose the true statement below.
a.
The net pay is correct.
b.
The Social Security tax is not correct.
c.
The Medicare tax is not correct.
d.
The state tax is not correct.
 

Please select the best answer from the choices provided

A
B
C
D

To determine if Juanita's net pay is correct, we need to verify the calculations for each of the taxes and deductions and compare them to her actual deductions. Here's the step-by-step verification:

### 1. Gross Pay
- Juanita's gross pay is given as **$1,020.00**.

### 2. Federal Withholding (FED WITH)
- The federal tax withheld is **$107.00**. This is already confirmed correct as per the problem statement.

### 3. Social Security Tax (SOC WITH)
- Social Security tax rate is **6.2%** of the gross pay.
- Calculation: 
  \[
  \text{Social Security} = 0.062 \times 1020 = 63.24
  \]
- The Social Security deduction shown is **$63.24**, which is correct.

### 4. Medicare Tax (MED CARE)
- Medicare tax rate is **1.45%** of the gross pay.
- Calculation: 
  \[
  \text{Medicare} = 0.0145 \times 1020 = 14.79
  \]
- The Medicare deduction shown is **$14.79**, which is correct.

### 5. State Tax (STATE WITH)
- State tax is **19%** of the federal tax.
- Calculation: 
  \[
  \text{State Tax} = 0.19 \times 107 = 20.33
  \]
- The state tax deduction shown is **$20.33**, which is correct.

### 6. Net Pay Calculation
- Net pay is calculated as:
  \[
  \text{Net Pay} = 1020 - 107 - 63.24 - 14.79 - 20.33 = 814.64
  \]
- The net pay shown is **$814.64**, which is correct.

### Conclusion
All the deductions and the net pay match the calculations based on the given percentages. Therefore, the correct answer is:

**a. The net pay is correct.**

---

Do you want further details or have any questions?

### Related Questions:
1. How is federal tax calculated on a paycheck?
2. What other deductions might be present on a paycheck apart from those mentioned?
3. How does Social Security tax change if gross pay changes?
4. What would happen if the state tax rate was different?
5. How do overtime earnings affect tax deductions?

**Tip:** Always verify each deduction individually when checking a payroll statement for accuracy.

Juanita receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 19% of federal tax, determine if Juanita's net pay is correct. 

Earnings
Deductions

Week Ended
   Regular    
FED.          SOC.        MED         STATE
WITH.        WITH.       CARE.       WITH.
NET PAY
11/17
$1,020.00
$107.00    $63.24     $14.79       $20.33
$814.64
Choose the true statement below.
a. The net pay is correct.
b. The Social Security tax is not correct.
c. The Medicare tax is not correct.
d. The state tax is not correct.

Learn how to calculate payroll taxes on Juanita's paycheck, including Social Security (6.2%), Medicare (1.45%), and state tax (19% of federal tax). Verify if her net pay of $814.64 is accurate by following step-by-step deductions based on her gross pay of $1,020.00.

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