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)

Answer 1

To calculate your realized income for the two weeks, we first need to determine your gross income before deductions and then apply the deductions to find your take-home pay.

1. **Calculate Gross Income:**
- Hourly rate: $12.50
- Hours worked per week: 28
- Total weeks: 2

\[
\text{Gross Income} = \text{Hourly Rate} \times \text{Hours per Week} \times \text{Total Weeks}
\]
\[
\text{Gross Income} = 12.50 \times 28 \times 2 = 12.50 \times 56 = 700
\]

2. **Calculate Deductions:**
- FICA deduction: 5.4%
- Federal withholding: 14%
- State withholding: 9%

**First, find the total percentage of deductions:**
\[
\text{Total Deductions Percentage} = 5.4\% + 14\% + 9\% = 28.4\%
\]

**Now, calculate the total deductions amount:**
\[
\text{Total Deductions} = \text{Gross Income} \times \text{Total Deductions Percentage}
\]
\[
\text{Total Deductions} = 700 \times 0.284 = 198.8
\]

3. **Calculate Realized Income:**
\[
\text{Realized Income} = \text{Gross Income} - \text{Total Deductions}
\]
\[
\text{Realized Income} = 700 - 198.8 = 501.2
\]

Therefore, your realized income (the amount you take home) for the two weeks is **$501.20**.