Round any decimals to the nearest penny.

You get a part-time job earning $8.60/hr. Tips are $3.25/hr on average. Deductions are FICA (7.65%), federal tax withholding (11.2%), and state tax withholding (7.45%). You work for 15 hours. What is your gross base pay?

1 answer

Gross base pay per hour = $8.60 + $3.25 = $11.85

Total gross pay for 15 hours = 15 hours x $11.85 = $178.50

After deductions:
FICA deduction = 7.65% of $178.50 = $13.65
Federal tax withholding = 11.2% of $178.50 = $19.99
State tax withholding = 7.45% of $178.50 = $13.30

Total deductions = $13.65 + $19.99 + $13.30 = $46.94

Net pay after deductions = $178.50 - $46.94 = $131.56

Therefore, your gross base pay is $131.56.