In the scenario described, what is the employee's net pay?

• A. $2,603.99
• B. $2,689.79
• C. $2,604.79
• D. $2,623.54

Answer: (C)

Net pay is what remains after subtracting all withholdings and deductions from gross pay. To arrive at it, start with the gross pay for the period, subtract pre-tax deductions (like retirement contributions and health premiums) to get taxable wages, then apply FICA taxes (Social Security and Medicare) and federal, state, and local income tax withholding based on the employee’s W-4 and rates. Finally, subtract any after-tax deductions (such as garnishments). The amount left is the net pay.

In this scenario, after applying all described withholdings and deductions, the take-home amount is 2,604.79. That value matches the described calculations for this scenario. The other numbers would result from different deduction totals or tax withholdings than those described.