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?

$

1 answer

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:

\[ \boxed{75.99} \]