Question

11. Your gross pay is $2,759. Your involuntary deductions are FICA 7.65%, federal withholding 12% and state withholding 7% How much are you allowed for housing and fixed expenses
a) $772.52
b) $993.24
c) $728.54
d) $566.64

Answer 1

First find take‑home pay after involuntary deductions:
Total deductions = 7.65% + 12% + 7% = 26.65%
Net pay = 2759 × (1 − 0.2665) = 2759 × 0.7335 = $2,023.73

Allowed for housing/fixed expenses = 36% of net:
0.36 × 2,023.73 = $728.54

Answer: c) $728.54