Suppose that you work at the Peacock Blue store for 40 hours over five days at a rate of $9.25/hour. You then quit your job. Deductions are FICA (7.65%), federal withholding (12%), and state withholding (8%). Your expenses are transportation at $5.25/day, lunch at $3.85/day, and black slacks required for work at $19.95. How much is your discretionary income for the week?
I come out with $201.84 but the answers are:
• $324.50
• $304.55
• $222.19
• $202.24
2 answers
202.25
40 hours * $9.25 = $370
$370 * 4 weeks = $1480
then, calculate and then subtract the involuntary deductions (1480*.0765) + (1480*.12) + (1480*.08) = $409.22
$1480 - $409.22 = $1070.78 (your net income for a month)
to get the net income of one week, divide by 4
$1070.78/4 = 267.69
$370 * 4 weeks = $1480
then, calculate and then subtract the involuntary deductions (1480*.0765) + (1480*.12) + (1480*.08) = $409.22
$1480 - $409.22 = $1070.78 (your net income for a month)
to get the net income of one week, divide by 4
$1070.78/4 = 267.69