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Round any decimals to the nearest penny. You earn $8.60/hr. You work 32 hr/wk and your deductions are FICA 7.65%, Fed Tax 10.6%

and state tax 8.25%. How much do you have direct-deposited bi-weekly?

1 answer

To calculate your bi-weekly direct deposit amount, we will follow these steps:

  1. Calculate your gross bi-weekly earnings.
  2. Calculate the total deductions (FICA, Federal Tax, State Tax).
  3. Subtract the deductions from your gross earnings.

Step 1: Calculate Gross Bi-Weekly Earnings

You earn $8.60/hour, and you work 32 hours per week.

Bi-weekly hours = 32 hours/week * 2 weeks = 64 hours.

Gross bi-weekly earnings = $8.60/hour * 64 hours = $550.40.

Step 2: Calculate Total Deductions

Now we need to calculate the taxes based on the gross bi-weekly earnings.

  1. FICA: 7.65% \[ \text{FICA deduction} = 550.40 * 0.0765 = 42.05 \]

  2. Federal Tax: 10.6% \[ \text{Federal Tax deduction} = 550.40 * 0.106 = 58.42 \]

  3. State Tax: 8.25% \[ \text{State Tax deduction} = 550.40 * 0.0825 = 45.39 \]

Step 3: Calculate Total Deductions

Total Deduction = FICA + Federal Tax + State Tax \[ \text{Total Deduction} = 42.05 + 58.42 + 45.39 = 145.86 \]

Step 4: Calculate Net Bi-Weekly Earnings

Net bi-weekly earnings = Gross bi-weekly earnings - Total deductions \[ \text{Net bi-weekly earnings} = 550.40 - 145.86 = 404.54 \]

Final Answer

Your direct deposit bi-weekly is $404.54.