You are paid $10.65 per hour. Your deductions are FICA 7.65%, Fed tax 9.9% and state tax 7.35%

Question

Your housing and fixed expenses are $493.68/ month. How many hours per month must you work to be sure
those expenses are paid. Type as a whole number with no decimals

Answer 1

To determine how many hours you need to work each month to cover your housing and fixed expenses of $493.68, we first need to calculate your net pay after deductions.

Step 1: Calculate Deductions

1. Hourly Wage: $10.65
2. FICA (7.65%): \( 10.65 \times 0.0765 = 0.814725 \)
3. Federal Tax (9.9%): \( 10.65 \times 0.099 = 1.052235 \)
4. State Tax (7.35%): \( 10.65 \times 0.0735 = 0.782775 \)

Total Deductions

Now we sum up all the deductions: \[ \text{Total Deductions} = 0.814725 + 1.052235 + 0.782775 = 2.649735 \]

Step 2: Calculate Net Pay

Now, subtract the total deductions from the hourly wage: \[ \text{Net Pay} = 10.65 - 2.649735 = 8.000265 \quad (\text{approximately } 8.00) \]

Step 3: Calculate Monthly Hours Required

Now, we find out how many hours you need to work to earn enough to cover $493.68: \[ \text{Monthly Hours} = \frac{493.68}{\text{Net Pay per Hour}} = \frac{493.68}{8.00} \approx 61.71 \]

Step 4: Round up to the nearest whole number

Since you cannot work a fraction of an hour to ensure all expenses are covered, round up to the nearest whole number: \[ \text{Required Hours} = 62 \]

You need to work 62 hours per month to cover your housing and fixed expenses.