Round any decimals to the nearest penny.

Question

You have direct deposit. Your job pays you $8.55/hr and you work 15 hr/wk. Your deductions are FICA (7.65%), federal tax withholding (10.4%), and state tax withholding (7.7%). How much is deposited bi-weekly?

Answer 1

First, calculate the gross pay for one week:
$8.55/hr * 15 hr = $128.25/week

Now, calculate the total deductions for one week:
FICA: 7.65% * $128.25 = $9.80
Federal tax withholding: 10.4% * $128.25 = $13.35
State tax withholding: 7.7% * $128.25 = $9.86

Total deductions: $9.80 + $13.35 + $9.86 = $33.01

Now, subtract the total deductions from the gross pay to find the net pay:
$128.25 - $33.01 = $95.24/week

Since this is a bi-weekly pay period, multiply the net pay by 2 to find the total amount deposited bi-weekly:
$95.24/week * 2 weeks = $190.48

Therefore, the amount deposited bi-weekly is $190.48.