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For questions 3 and 4, you will be answering by filling in the blanks. Please be aware that your answer must include any commas or decimals in their proper places in order to be correct. The dollar signs have been provided. For example, if the answer is $1,860.78, then you will enter into the blank 1,860.78. Do not place any extra spaces between numbers, commas, or decimal places. Round any decimals to the nearest penny when the answer involves money, so that $986.526 would be typed into the blank as 986.53 and $5,698.903 would be typed into the blank as 5,698.90. You are paid $7.75/hr at your part-time job and your deductions are FICA (7.65%), federal tax withholding (10.15%), and state tax withholding (6.8%). You work 11 hours. How much is your net income? Do not round off to the nearest cent until the end.

You are paid $8.10/hr at your part-time job. Your deductions are FICA (7.65%), federal tax withholding (9.35%), and state tax withholding (7.2%). You employer gives you a 10% raise. You work 10 hours per week. What is your gross pay after 3 weeks and round to the resets cent ?

1 answer

To find the net income from the first scenario and the gross pay after 3 weeks from the second scenario, we will go through the calculations step by step.

Question 3: Calculate net income

  1. Calculate the gross pay: \[ \text{Gross Pay} = \text{Hourly Rate} \times \text{Hours Worked} = 7.75 \times 11 = 85.25 \]

  2. Calculate deductions:

    • FICA: \( 85.25 \times 0.0765 = 6.52 \)
    • Federal Tax Withholding: \( 85.25 \times 0.1015 = 8.66 \)
    • State Tax Withholding: \( 85.25 \times 0.068 = 5.79 \)

  3. Total deductions: \[ \text{Total Deductions} = 6.52 + 8.66 + 5.79 = 20.97 \]

  4. Calculate net income: \[ \text{Net Income} = \text{Gross Pay} - \text{Total Deductions} = 85.25 - 20.97 = 64.28 \]

Net income: $64.28

Question 4: Calculate gross pay after a raise

  1. Calculate the new hourly rate after a 10% raise: \[ \text{New Hourly Rate} = 8.10 \times (1 + 0.10) = 8.10 \times 1.10 = 8.91 \]

  2. Calculate the gross pay for 10 hours per week: \[ \text{Gross Pay for 1 Week} = 8.91 \times 10 = 89.10 \]

  3. Calculate gross pay for 3 weeks: \[ \text{Gross Pay for 3 Weeks} = 89.10 \times 3 = 267.30 \]

Gross pay after 3 weeks: $267.30

Final answers:

  • Question 3: 64.28
  • Question 4: 267.30