Georgia Assessments for the Certification of Educators GACE Practice Test 2026 - Free GACE Practice Questions and Study Guide

To find the employee's net pay, start by calculating the total amount withheld for taxes and health insurance from the gross pay of $2,000.00.

First, calculate the total tax percentage:

- Federal taxes: 9%

- State taxes: 3%

- Local taxes: 2%

Adding these percentages together gives you a total tax rate of 14%. To find the total tax amount:

Total taxes = Gross pay × Total tax rate

Total taxes = $2,000.00 × 0.14 = $280.00

Next, subtract the total taxes from the gross pay:

Gross pay after taxes = Gross pay - Total taxes

Gross pay after taxes = $2,000.00 - $280.00 = $1,720.00

Now, account for the health insurance withholding, which is $104.36:

Net pay = Gross pay after taxes - Health insurance withholding

Net pay = $1,720.00 - $104.36 = $1,615.64

Thus, the employee's net pay is $1,615.64, which aligns with the correct answer.