Question

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.

Answer 1

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**.