Question

You decide to get a part-time job at a local hardware store. The job pays $11.00 an hour and you will work 20 hours a week. Your employer withholds 10% of your gross pay for federal taxes, 5.65% for FICA taxes, and 2.5% for the state tax What percentage of your check goes to taxes

Answer 1

To determine the percentage of your paycheck that goes to taxes, we’ll first calculate your gross pay and then the total amount withheld for taxes.

1. **Calculate Gross Pay:**
- Hourly wage: $11.00
- Hours per week: 20
- Gross pay per week = Hourly wage × Hours per week
\[
\text{Gross Pay} = 11 \times 20 = 220 \text{ dollars}
\]

2. **Calculate the Total Tax Withholdings:**
- Federal taxes: 10% of gross pay
- FICA taxes: 5.65% of gross pay
- State taxes: 2.5% of gross pay

Total tax percentage = 10% + 5.65% + 2.5%
\[
\text{Total Tax Percentage} = 10 + 5.65 + 2.5 = 18.15\%
\]

3. **Calculate Total Amount Withheld for Taxes:**
\[
\text{Total Amount Withheld} = 220 \times \frac{18.15}{100} = 220 \times 0.1815 = 39.93 \text{ dollars}
\]

4. **Calculate After-tax Income:**
\[
\text{After-tax Income} = \text{Gross Pay} - \text{Total Amount Withheld} = 220 - 39.93 = 180.07 \text{ dollars}
\]

5. **Percentage of Paycheck That Goes to Taxes:**
\[
\text{Percentage of Paycheck That Goes to Taxes} = \frac{\text{Total Amount Withheld}}{\text{Gross Pay}} \times 100
\]
\[
\text{Percentage} = \frac{39.93}{220} \times 100 \approx 18.15\%
\]

Thus, approximately **18.15% of your paycheck goes to taxes**.