You are paid $7.75/hr at your part-time job and your

deductions are FICA (7.65%), federal tax withholding (10.15%)
and state withholding (6.8%). You work 11 hours. How much
is your net income? Do not round off to the nearest cent until the end.

1 answer

To calculate your net income, you can follow these steps:

  1. Calculate Gross Income: \[ \text{Gross Income} = \text{Hourly Wage} \times \text{Hours Worked} \] \[ \text{Gross Income} = 7.75 , \text{USD/hr} \times 11 , \text{hours} = 85.25 , \text{USD} \]

  2. Calculate Deductions:

    • FICA (7.65%): \[ \text{FICA} = \text{Gross Income} \times \frac{7.65}{100} = 85.25 , \text{USD} \times 0.0765 = 6.513625 , \text{USD} \]

    • Federal Tax Withholding (10.15%): \[ \text{Federal Tax} = \text{Gross Income} \times \frac{10.15}{100} = 85.25 , \text{USD} \times 0.1015 = 8.653875 , \text{USD} \]

    • State Withholding (6.8%): \[ \text{State Tax} = \text{Gross Income} \times \frac{6.8}{100} = 85.25 , \text{USD} \times 0.068 = 5.799 , \text{USD} \]

  3. Total Deductions: \[ \text{Total Deductions} = \text{FICA} + \text{Federal Tax} + \text{State Tax} \] \[ \text{Total Deductions} = 6.513625 + 8.653875 + 5.799 = 21.9665 , \text{USD} \]

  4. Calculate Net Income: \[ \text{Net Income} = \text{Gross Income} - \text{Total Deductions} \] \[ \text{Net Income} = 85.25 , \text{USD} - 21.9665 , \text{USD} = 63.2835 , \text{USD} \]

Therefore, your net income after deductions is $63.2835. If you need it rounded to the nearest cent, it would be $63.28.