To find your net hourly wage, we need to calculate your gross pay, apply the deductions for FICA, federal tax withholding, and state tax withholding, and then subtract those deductions from your gross pay.
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Calculate Gross Pay: \[ \text{Gross Pay} = \text{Hourly Wage} \times \text{Hours Worked} \] \[ \text{Gross Pay} = 7.85 , \text{USD/hr} \times 10 , \text{hours} = 78.50 , \text{USD} \]
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Calculate Deductions:
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FICA Deduction: \[ \text{FICA} = \text{Gross Pay} \times 0.0765 = 78.50 \times 0.0765 = 6.01 , \text{USD} \]
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Federal Tax Withholding: \[ \text{Federal Tax} = \text{Gross Pay} \times 0.098 = 78.50 \times 0.098 = 7.69 , \text{USD} \]
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State Tax Withholding: \[ \text{State Tax} = \text{Gross Pay} \times 0.055 = 78.50 \times 0.055 = 4.33 , \text{USD} \]
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Total Deductions: \[ \text{Total Deductions} = \text{FICA} + \text{Federal Tax} + \text{State Tax} \] \[ \text{Total Deductions} = 6.01 + 7.69 + 4.33 = 18.03 , \text{USD} \]
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Calculate Net Pay: \[ \text{Net Pay} = \text{Gross Pay} - \text{Total Deductions} \] \[ \text{Net Pay} = 78.50 - 18.03 = 60.47 , \text{USD} \]
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Calculate Net Hourly Wage: \[ \text{Net Hourly Wage} = \frac{\text{Net Pay}}{\text{Hours Worked}} = \frac{60.47}{10} = 6.05 , \text{USD/hr} \]
Thus, your net hourly wage, rounded to the nearest penny, is $6.05.