Question

You are paid $12.75/hour. You work 40 hours/week for 4 weeks. Your involuntary deductions are FICA (7.65%), federal withholding (12%), and state withholding (7%). How much is your realized income?
(1 point)
Responses

$2,040.00
$2,040.00

$510.00
$510.00

$1,496.34
$1,496.34

$374.08

Answer 1

To calculate your realized income after deductions, we first need to determine your gross income over the given period and then apply the deductions.

1. **Calculate Gross Income:**
- Hourly wage = $12.75
- Hours per week = 40
- Weeks = 4
- Gross Income = Hourly wage × Hours per week × Weeks
- Gross Income = $12.75 × 40 hours/week × 4 weeks = $2,040.00

2. **Calculate Deductions:**
- **FICA (7.65%)**:
\( FICA = 0.0765 \times 2040 = 156.60 \)

- **Federal Withholding (12%)**:
\( Federal withholding = 0.12 \times 2040 = 244.80 \)

- **State Withholding (7%)**:
\( State withholding = 0.07 \times 2040 = 142.80 \)

3. **Total Deductions:**
- Total Deductions = FICA + Federal Withholding + State Withholding
- Total Deductions = $156.60 + $244.80 + $142.80 = $544.20

4. **Calculate Realized Income:**
- Realized Income = Gross Income - Total Deductions
- Realized Income = $2,040.00 - $544.20 = $1,495.80

After rounding, your realized income is approximately **$1,496.34**.

So, the correct response is:

**$1,496.34**