Question

You are paid $12.50/ hour. You work 28 hours / week for 2 weeks. Your involuntary deductions are FICA (5.4%), federal withholding (14%) and state withholding (9%). How much is your realized income for the two weeks? (The amount you take home)(1 point)
Responses

$609.39
$609.39
$501.20
$501.20
$700.00
$700.00
$198.80

Answer 1

To calculate your realized income (take-home pay) for the two weeks, we will follow these steps:

1. **Calculate Gross Income**:
- Hourly wage = $12.50
- Hours worked per week = 28
- Weeks worked = 2

Gross Income = Hourly wage × Hours worked per week × Weeks worked
\[
\text{Gross Income} = 12.50 \times 28 \times 2 = 12.50 \times 56 = 700.00
\]

2. **Calculate Deductions**:
- FICA Deduction = 5.4%
- Federal Withholding = 14%
- State Withholding = 9%

Total Deduction Percentage = FICA + Federal + State
\[
\text{Total Deduction Percentage} = 5.4\% + 14\% + 9\% = 28.4\%
\]

Total deductions amount (in dollars) = Gross Income × Total Deduction Percentage
\[
\text{Total Deductions} = 700.00 \times 0.284 = 198.80
\]

3. **Calculate Realized Income (Net Pay)**:
Realized Income = Gross Income - Total Deductions
\[
\text{Realized Income} = 700.00 - 198.80 = 501.20
\]

So, your realized income for the two weeks is **$501.20**. Therefore, the correct response is:

**$501.20**