To calculate your net income after deducting travel expenses, we will follow these steps:
- Calculate your total gross income for the 12 hours worked.
- Calculate the total deductions (FICA, federal tax, and state tax).
- Subtract the deductions from the gross income to find the net income.
- Subtract the travel expenses from the net income.
Step 1: Calculate Gross Income
You are paid $7.45 per hour and worked a total of 12 hours.
\[ \text{Gross Income} = \text{Hourly Wage} \times \text{Hours Worked} = 7.45 \times 12 = 89.40 \]
Step 2: Calculate Deductions
FICA (7.65%): \[ \text{FICA} = \text{Gross Income} \times 0.0765 = 89.40 \times 0.0765 \approx 6.8361 \approx 6.84 \]
Federal Tax Withholding (10.65%): \[ \text{Federal Tax} = \text{Gross Income} \times 0.1065 = 89.40 \times 0.1065 \approx 9.5271 \approx 9.53 \]
State Tax Withholding (5.7%): \[ \text{State Tax} = \text{Gross Income} \times 0.057 = 89.40 \times 0.057 \approx 5.0918 \approx 5.09 \]
Total Deductions: \[ \text{Total Deductions} = \text{FICA} + \text{Federal Tax} + \text{State Tax} = 6.84 + 9.53 + 5.09 = 21.46 \]
Step 3: Calculate Net Income Before Travel Expenses
\[ \text{Net Income} = \text{Gross Income} - \text{Total Deductions} = 89.40 - 21.46 = 67.94 \]
Step 4: Subtract Travel Expenses
You worked over 3 days with travel expenses of $5.70 per day.
\[ \text{Total Travel Expenses} = \text{Travel Expenses per Day} \times \text{Number of Days} = 5.70 \times 3 = 17.10 \]
Now, subtract the travel expenses from the net income.
\[ \text{Net Income After Travel Expenses} = \text{Net Income} - \text{Total Travel Expenses} = 67.94 - 17.10 = 50.84 \]
Therefore, the net income after subtracting travel expenses is $50.84.
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