Question

You are paid $8.25/hour. You work 35 hours/week for 3 weeks. Your involuntary deductions are FICA (7.65%), federal withholding (13%), and state withholding (9%). How much is your realized income?
(1 point)
Responses

$203.13
$203.13

$866.25
$866.25

$288.75
$288.75

$609.39

Answer 1

To calculate your realized income, we need to follow these steps:

1. **Calculate Total Earnings**:
\[
\text{Total Earnings} = \text{Hourly Rate} \times \text{Hours per Week} \times \text{Number of Weeks}
\]
\[
\text{Total Earnings} = 8.25 \, \text{USD/hour} \times 35 \, \text{hours/week} \times 3 \, \text{weeks}
\]
\[
\text{Total Earnings} = 8.25 \times 35 \times 3 = 866.25 \, \text{USD}
\]

2. **Calculate Total Deductions**:
- **FICA (7.65%)**:
\[
\text{FICA} = 866.25 \times 0.0765 = 66.24 \, \text{USD} \quad \text{(rounded to 2 decimal places)}
\]
- **Federal Withholding (13%)**:
\[
\text{Federal Withholding} = 866.25 \times 0.13 = 112.60 \, \text{USD} \quad \text{(rounded to 2 decimal places)}
\]
- **State Withholding (9%)**:
\[
\text{State Withholding} = 866.25 \times 0.09 = 77.96 \, \text{USD} \quad \text{(rounded to 2 decimal places)}
\]

3. **Total Deductions**:
\[
\text{Total Deductions} = \text{FICA} + \text{Federal Withholding} + \text{State Withholding}
\]
\[
\text{Total Deductions} = 66.24 + 112.60 + 77.96 = 256.80 \, \text{USD}
\]

4. **Calculate Realized Income**:
\[
\text{Realized Income} = \text{Total Earnings} - \text{Total Deductions}
\]
\[
\text{Realized Income} = 866.25 - 256.80 = 609.45 \, \text{USD} \quad \text{(rounded to 2 decimal places)}
\]

Since the options provided in your question might have rounded values, let's return to see if it's accounted for. The closest value to this is **$609.39**.

So, the correct answer is **$609.39**.