Response to the following problem:
Suppose you work for an accounting firm all year and earn a monthly salary of $8,000. There is no overtime pay. Your withheld income taxes consume 15% of gross pay. In addition to payroll taxes, you elect to contribute 5% monthly to your pension plan. Your employer also deducts $200 monthly for your co-pay of the health insurance premium.
Compute your net pay for November. Use an 8% FICA tax rate on the first $87,000 of income.