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Comprehensive Example
Angela Viviano earns $2,000 a month as a physical therapist's assistant. In addition to payroll taxes and income tax withholding, her employer withholds $50 for her retirement account. Angela's net pay is calculated as follows:
| Gross pay | $ |
| Social Security tax (6.2 percent of gross pay) | -$124.00 |
| Medicare tax (1.45 percent of gross pay) | -$29.00 |
| Income tax (per Form W-4) | -$237.00 |
| Retirement | -$50.00 |
| Net pay | $1,560.00 |
Angela earns $2,000 gross pay and receives a net paycheck for $1,560.
Her employer sends $390 ($124 + $29 + $237) to the federal government and $50 to the retirement fund.
"Try adjusting the Gross Pay amount to see different results"
~Tina the Tax Tutor
