The Porters are moving because Mr. Porter got a new job. Until Mrs. Porter finds a job in the new city, the Porter family will live on Mr. Porter’s salary. In the new city, his gross pay is $7,500 per month. His deductions include the following:
Federal income tax $1,400
State income tax $535
Social Security $415
Medicare $150
What is Mr. Porter’s net pay each month?
5,000
6,100
6,500
7,500
Since in total the cost of all the taxes Mr. Porter pays is $2500 you subtract that from his monthly $7500 salary and get $5000 as his net pay or overall pay for the month.