Tom earns $500, has $125 withheld, and is given a check for $375. What is Tom's net pay?

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Prepare for the MindTap Medical Administrative Assistant Test. Use flashcards and multiple choice questions with hints and explanations. Enhance your readiness for the exam!

To determine Tom's net pay, we need to consider the amount he earned and the amount withheld. Tom earns a total of $500, but from this amount, $125 is withheld for taxes or other deductions. Net pay is calculated by taking the gross pay and subtracting the total amount withheld.

By subtracting the withheld amount from the earnings:

$500 (earnings) - $125 (withheld) = $375 (net pay).

This means that after deductions, Tom receives a check for $375, which accurately reflects his net pay. Therefore, the correct answer is that Tom's net pay is indeed $375.

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