Question

Round any decimals to the nearest penny.

You are paid $8.35/hr at your part-time job. Your deductions are FICA (7.65%), federal tax withholding (9.15%), and state tax withholding (7.5%). Your travel expenses are $6.30 per day worked. You work 16 hours over a 4-day period of time. What is your net income after travel expenses?

$

Answer 1

To find your net income after travel expenses, we will break this calculation down step by step.

### Step 1: Calculate Gross Pay
First, calculate your gross pay based on your hourly wage and the number of hours worked.

\[
\text{Gross Pay} = \text{Hourly Wage} \times \text{Total Hours Worked}
\]

Given:
- Hourly Wage = $8.35
- Total Hours Worked = 16 hours

\[
\text{Gross Pay} = 8.35 \times 16 = 133.60
\]

### Step 2: Calculate Deductions
Next, we need to calculate the total deductions from your gross pay, which includes FICA, federal tax withholding, and state tax withholding.

1. **FICA Deduction:**
\[
\text{FICA} = \text{Gross Pay} \times 0.0765
\]
\[
\text{FICA} = 133.60 \times 0.0765 \approx 10.19
\]

2. **Federal Tax Withholding:**
\[
\text{Federal Tax} = \text{Gross Pay} \times 0.0915
\]
\[
\text{Federal Tax} = 133.60 \times 0.0915 \approx 12.22
\]

3. **State Tax Withholding:**
\[
\text{State Tax} = \text{Gross Pay} \times 0.075
\]
\[
\text{State Tax} = 133.60 \times 0.075 \approx 10
\]

### Step 3: Total Deductions
Now, we'll total the deductions:

\[
\text{Total Deductions} = \text{FICA} + \text{Federal Tax} + \text{State Tax}
\]
\[
\text{Total Deductions} = 10.19 + 12.22 + 10 \approx 32.41
\]

### Step 4: Calculate Net Pay
Now we can calculate the net pay before travel expenses:

\[
\text{Net Pay} = \text{Gross Pay} - \text{Total Deductions}
\]
\[
\text{Net Pay} = 133.60 - 32.41 \approx 101.19
\]

### Step 5: Subtract Travel Expenses
Finally, subtract your travel expenses from your net pay. Since you work 4 days and your travel expenses are $6.30 per day:

\[
\text{Total Travel Expenses} = 6.30 \times 4 = 25.20
\]

Now, calculate the final net income:

\[
\text{Final Net Income} = \text{Net Pay} - \text{Total Travel Expenses}
\]
\[
\text{Final Net Income} = 101.19 - 25.20 \approx 75.99
\]

### Conclusion
After rounding any decimals to the nearest penny, your net income after travel expenses is:

\[
\boxed{75.99}
\]