Payroll Accounting: Deductions
Employee received a paycheck for two weeks salary pay:
Gross Pay $2,692.31
Federal Withholding - $273.00
Social Security - $176.11
Net Pay: $2,350.18
Finance Department calls and tells employee, they made a mistake - The employee only worked one week.
The pay for one of the weeks has to be returned to the finance department.
The employee can keep the Auto allowance: $161,54 since it was for the previous month.
But the amount of deductions was based on the entire amount of the Gross pay and automobile-allowance.
How much does the employee have to pay back considering taxes and deductions that were applied? And Why? Please explain.