Question

Your gross pay is $1,843.45. Your involuntary deductions are FICA (7.65%), federal withholding (9%), and state withholding (6.5%). How much are you allowed for housing and fixed expenses?
(1 point)
Responses

$516.17
$516.17

$663.64
$663.64

$510.01
$510.01

$396.68
$396.68

Answer 1

First find net pay after involuntary deductions:
Total deduction rate = 7.65% + 9% + 6.5% = 23.15%
Net pay = 1843.45 × (1 − 0.2315) = 1843.45 × 0.7685 = $1,416.69

Housing & fixed expenses = 36% of net pay:
0.36 × 1,416.69 = $510.01

Answer: $510.01