You are paid $13.45/hr. Your deductions are FICA 7.65%, federal tax withholding 8.8% and state tax withholding 7.35%.

Your housing and fixed expenses are $387.56/month. How many hours per month must you work to be sure those expenses are paid

1 answer

To determine how many hours per month you need to work to cover your fixed expenses, we can start by calculating your take-home pay (net pay) after deductions based on your hourly wage.

Step 1: Calculate your total deductions

  1. FICA: 7.65%
  2. Federal Tax Withholding: 8.8%
  3. State Tax Withholding: 7.35%

Total deductions = FICA + Federal Tax + State Tax
Total deductions = 7.65% + 8.8% + 7.35%
Total deductions = 23.8%

Step 2: Calculate your net pay per hour

Your gross pay per hour is $13.45. The net pay can be calculated as follows:

\[ \text{Net Pay} = \text{Gross Pay} \times (1 - \text{Total Deductions}) \]

\[ \text{Net Pay} = 13.45 \times (1 - 0.238) \] \[ \text{Net Pay} = 13.45 \times 0.762 \] \[ \text{Net Pay} \approx 10.24 \]

Step 3: Determine your monthly expenses

Your housing and fixed expenses are $387.56/month.

Step 4: Calculate the number of hours needed to cover those expenses

To find out how many hours you need to work to cover your monthly expenses, divide your total monthly expenses by your net pay per hour.

\[ \text{Hours Needed} = \frac{\text{Monthly Expenses}}{\text{Net Pay per Hour}} \] \[ \text{Hours Needed} = \frac{387.56}{10.24} \] \[ \text{Hours Needed} \approx 37.88 \]

Since you can't work a fraction of an hour in this context, you would need to round up to the next whole hour.

Conclusion:

You must work 38 hours per month to cover your housing and fixed expenses of $387.56.